A Study Of Implementing Executive Stock Option In China' Financial Institutions

Executive Stock Option gives operators the right to distribute in surplus as capital owner and impels them to maximize share-holder's interests. Financial enterprise such as the bank belongs to the high knowledge and sensitively residual sharing trade. Its performance has close relations with the operator's efforts. Applying the ESO to financial enterprise is a kind of effectual encouragement method, which has been verified in the western countries. It effectively attracts talent and promotes the financial enterprise achievement.Some enterprises in our country have tried ESO since 1997 and have formed various kinds of encouragement modes. But these practices only stay in high-technology enterprises. Can we impel the ESO in our financial enterprise as western countries? Can we guarantee the ESO to reach the ideal result in current environment? Can we design a set of China encouragement schemes? This is exactly the realistic point of starting to write this text.This article explains the basic principle of the ESO and the problem of salary distribution. According to our country environment, author get to the conclusion: because of many environmental restrictions, the effect of the ESO will be given a great discount. So if implying this encouragement scheme in our financial enterprise, we must take the road of China.At last, taking the China Merchants Bank as an example ,the paper analyses a specific ESO scheme,especially its feasibility and transition.It is believed that with the development of our finance mechanism and securities market, this kind of encouragement will be used loudly and exerts a positive influence on the reforming of salary.