The Research On The Legal System Of Executive Stock Options

The stock option is the right which the staffs purchase the stock in the future by the prearranged price. It makes managers share right of the enterprise's achievement, and also undertake certain risk simultaneously. Stock Option system is one of the effective encouraging ways that adapt to the development of modern enterprises system. It links the managers' benefits and their contribution with the future expansion of enterprises closely. So it not only can embody the value of managers' human resources, but also can effectively solve the problem of principal-agent in modern enterprises. So, it is necessary for us to bring the system to China, and so does .But China face some obstacles or problems, especially about the establishment in legal system, this is just what this paper will discuss.This paper includes five parts:Part 1 is the general introduction of Stock Options. It elaborates the notion, the discrimination with the similar concept, simultaneously analyzes this system about the positive role and the negative effect.Part 2 mainly introduced theoretic basis of the stock option system: Surplus claim power theory, principal-agent theory and human capital theory.Part 3 mainly introduces the exploration of its enforcement in China, includes including the condition of the distribution system in Chinese state-owned enterprises, the scope adapted to the enterprise and the enforcement practice in our enterprises, also the author compares domestic Stock Option system with overseas ones.Part 4 analyzed the main legal obstacles which the stock option system faced. Including law of corporation, securities law, tax law, fiscal law and labor law.Part 5 is the core of this paper, initially brings forward the legislative advices of domestic Stock Option system, including its establishment in corporate law and securities law, its tax and accounting disposal, its establishment in labor law.