The Research On The Stock Options Incentive Mechanism Based On Strategic Performance Evaluation

As the separation between the modern enterprise ownership and the right to operate, the information asymmetry, inconsistent objectives between the operators and shareholders,resulted in operators"adverse selection"and"moral hazard", damaged the corporate value and the interests of shareholders. The equity incentives are intended to encourage operators to make a unity between the shareholders'purpose and the operators'action. The equity incentive mechanisms must be based on business performance. However, with the rapid development of information technology, the competitive environment, organizational structure, management style, customer demands profoundly changed. The original performance evaluation system has obviously not suited to the information age enterprise management and the competitive environment need. Therefore, in building performance-based business strategy evaluation system to effectively measure the performance of the operators is to implement the stock option incentive mechanism preconditions.In this thesis, regarded the basic theory of stock options incentive as the logic starting point,reviewed the study relevant to the corporate performance evaluation and stock options, analyzed the status quo of the stock options incentive mechanism, pointed out the stock option incentive mechanism have some problems such as performance evaluation system is not perfect, an exercise price set unreasonable, vesting amount lack gist. Then, analyzed and compared the traditional performance evaluation system, EVA system and the BSC system, and pointed out the advantages and disadvantages of them, on this basis to build a strategic performance evaluation system. According to the evaluation results by the strategic performance evaluation system and industry-based indices to amend the exercise price of the stock options. So that the amended exercise price of the stock options both to eliminate the impact of weak-form efficient, but also better reflect the performance of the operator. At the same time, the vesting amount was determined by EVA bonus plan. Finally, take SL Company as an example to explain how to use Strategic performance evaluation system to evaluate SL Company, amend exercise price, so that the stock option incentive plans to develop a more scientific and applicability.