The Study On Stock Option As An Incentive Plan In Telecommunication Industry In China

The ownership and the management powers of the modern business enterprise separate mutually, making the surplus control power and surpluses obtain power not to match each other, so the owners (the shareholders) of the business enterprise have to authorize the able managers (the agents) to do business on behalf of them. Because the human resources plays a more and more important role in the business enterprise, it acts as one of the most key production factors, also requesting to participate the allotment of the profits.As we know, the competence of a human being has the characteristic that it couldn't be taken away from its proprietor, so it is necessary that the owners (the shareholders) of the business enterprise to set up an incentive system to make the proprietor of the human resources to do their best for the shareholders of the enterprise and themselves.In that agency circumstance, the owners of the enterprise can only see the results of the behaviors of the agents, and hard to observe the process whether they work hard. But the owners want to know the reality actually. As a consequence, the stock option incentive system came up, which acts as a kind of encourage mechanism, can make the agents share the benefits they created like a shareholder, and make them doing business in accordance with the shareholders, and also encourage them to work hard to raise the accomplishments and achievements of the enterprise they work for continuously so as to attain a win-win game, that is, both gained.In practice, the stock option incentive system not only has proved to be a scientific incentive method, but also plays a positive role at enhancing the energy of the business enterprise, coordinating the order of the market, promoting the development of the national economy, and becoming a main system of Economics and Management in modern times. These four Chinese main telecommunication operators are the...