The Research On Bringing Executive Stock Option System Into The Listed Companies On Small And Medium Enterprise Board

Operator's incentive problem is originated from the divorce between proprietorship and operating right of modern companies. Executive stock option system is one mature incentive model and its core is to endow company's manager the right to buy ordinary stocks at fixed price and at future given time. In order to alleviate moral risk, the owner of executive stock options can benefit from the growth of the company.The listed companies on Chinese small and medium enterprise board also face the problem of alleviating moral risk and debasing agency cost. Many scholars have given attention to introducing the executive stock option system to the listed companies on small and medium enterprise board. In contrast to the listed companies on main board, the listed companies on small and medium enterprise board have advantage to bring the executive stock option system into effect.The listed companies on middle-small enterprise board must use the experience of western mature market economy countries for reference. In this article every basic element of executive stock option system has been designed, which not only conforms to international practice but also indicates the characteristics of listed companies on small and medium enterprise board.