Research On Incentive Mode Of Executive Stock Options

With the pouring of the trans-corporation constantly, highly competitive market economy brings the opportunity to enterprise, and also makes the development of enterprises face the manager's stability and the crisis of new talent's introduction. At present ,the popular salary structure of listed company in our country, all mainly focus on encouraging in a short time, and have ignored the utility of long-term incentive mechanism. In order to encourage and restrain the manager from striving for long-term interests of enterprises, it should introduce ESO system in the listed company which is a valid method. Research on incentive mode of ESO, not only have value in theory, but also make a guidance function of enterprise's development in practice.It is one of the concerned hot questions for the theory and practice how to introduce the system of ESO to carry on effective encouragement to the managers. This thesis took the comparative analysis and applied analysis methods and studied this problem from five aspects. At first, on the basis of reviewing the studying process of executive stock option, the thesis analysed in depth the encouraging efficiency and encouraging form. Discussion the estimates of encouraging efficiency is an important content of studying ESO. Measuring the encouraging efficiency level mainly measure the sensitivity of manager's remuneration to achievement. The higher the sensitivity is, the higher encouraging efficiency level to the managers. Accounting basic performance and market basic performance form the suitable choosen foundation in enterprise's practice. Implement of ESO are in need of a series of environment to cooperate, but are not the change of simple management and distribution forms. This thesis has introduced the basic frame of ESO in detail. The normal ESO plan mainly includes seven basic key elements: authorized subject, authorized target, stock source, authorized quantity, executive price, executive date and performance evaluation indexes. This is a tight and huge project. The company generally sets up salary committee to be responsible for this project specially. Finally represented by China Unicom Limited Company, it showed the detailed data materials through comparing and analysing, and appeared that the concrete implement performance of ESO plan during the six years .Also it has carried on the data analysis of encouraging efficiency.Relying on the research and analyse of building up ESO incentive mode ,it proved that the stock option is only the supplementary means of payment at present in our country.As to the manager's remuneration, the proportion of the stock option is not high. It has not obvious encourage function, and has not really achieved the goal of ESO plan. In addition, it also brought some negative effects demanding prompt solution in implementation. However, with the ripe of the stock market, and the constant completion of company administration structure, we will design and operate the plan scientifically.At last we believe that it will exert a far-reaching influence on company administration structure and enterprise's reform and the manager's long-term encouragement.