Study On Executive Stock Option System In The Listed Company Of China

Executive Stock Option(short as ESO)plan, originated from the USA, now has extended to many countries in the world owing to its remarkable role in motivating and restraining the corporate managers. The ESO is the most popular form of long-term compensation incentives for executives in foreign companies. It can make owner's goals in accordance with operator's, decrease agency cost and overcome short-term action and make them pay more attention to enterprise's long-term development. From the 1990's, some of the Chinese enterprises began to try out ESO plan. Since new company law goes into effect ,the barriers of utilizing ESO of the Company on capital market are cleared away. However, there are many problems in using the ESO plan,which does not give full play to its motivating function.The text introduces the systems of ESO of America and summarizes successful experiences of theirs. According to Chinese practice, the text tells us the use model of ESO and beneficial conditions under new law. Major problems in using ESO plan are produced and many proposes and measures given in policies and operations are useful .