Research On Decision Of Stock Option

As an important incentive mechanism, Stock Option has got the extensive application in the western developed country. In recent years, it has been accepted by some fisted companies in our country. We hope that it can successfully solve the incentive problem of our managers, which has not been solved in the past over 20 years reformation.A remarkable characteristic of modern enterprises is thatthe ownership separates from power of management, therefore has produced trust-agent contradictory, in order to weaken this contradiction, business circles and theory circle are exploring and practicing constantly. Stock Option system is undoubtedly a kind of very good system innovation which weakens this contradiction. Stock Option is a right afforded by the owner of the enterprise to the managers to purchase the enterprises stock in the future,according to the agreed price solve the contradiction that the rights of surplus-claiming and surplus-controlling don not match the capital ownership to a certain extent, therefore it makes the benefit between managers and owners unanimous inherently as much as possible.2005 year's end, China Securities Regulatory Commission had issued "Lasted Company Stockholder's rights Policing method", many enterprises drove the restraint system the innovation governs with the promotion enterprise competitive power work key as the consummation company. In the next years many enterprises will certainly to have large quantities of enterprises to be able to start substantive start this work. They will use the stock option incentive mechanism. The stock option incentive mechanism involves the various content, decision is the core. However, owing to the unsoundness of our market economic system, putting Stock Option in practice at present will suffer from many drawbacks, market system or company's administration structure, a lot of people also suspect about necessity and feasibility that the listed company of our country implement Stock Option, how to dispel these doubt and solve these drawbackseffectively is a key problem whether stock option will bring practical effect or not in China. Therefore, the research on decision of stock option is necessary.The paper proceed from summary of stock option,has analysed the American stock option design experience, systematically combs, derives the theory essence, grasps the development tendency, and summarizes the our country enterprise stock option essential procedure, unifies our country national condition, builds a framework of stock option, designs the concrete stock option plan for our country enterprise to provide the theory basis and the practice pattern;And YKKJcompany as the example, design stock option plan to test and verify the framework's feasibility and rationality.