Study On ESO Of The Listed Company In China

With the development of our economy and opening up of improving, mainland enterprises are facing increasingly keen competition; the competition is not only from the industry, domestic enterprises, event extended over the world because of the diversity and globalization. In order to be competitive, enterprises have adopted many innovative measures, including the company governance, human resources management and technical and resource management. Legislature of government has adopted legislative, especially distribution system of innovation, but the results of the implementation morale of the traditional mechanisms were unsatisfactory, the reason is the separation between managers'interests and the shareholders'interests.The emergence of executive stock option (short for ESO) effectively solved the inconsistencies between managers and shareholders interests. In the middle twentieth century, ESO raised in the united states, (Pfizer put the stock options in the company's salary system for the first time in 1952). In the 1980s, the stock options have become very general in the long incentives for the senior managers in large listed company in western countries.The article focuses on the research topic of ESO. Firstly, research background, significance, etc, are introduced, and then discusses the theoretical basis of ESO, the progress and trend of ESO in our country and the United States are analyzed, then, make the empirical analysis of the listed companies that carry out ESO in China, and implementation suggestions are proposed. The purpose of the article is analyzing the present situation and problem of the incentives of stock options in our country, exploring the direction to the ESO system, providing suggestions for the implementation of incentives of stock options. However, the article is not important, there is some inconsequential defects, the sample is only the listed companies that imply ESO in 2009, the overall study is not deep; in addition, the three major industries in the stock options are also limited by the sample, so the two sides also need to further explore and study.