Research On Executive Stock Option Plan In Our Country

To stimulate the executives in highly dispersed corporations work scrupulously and conscientiously, managerial ownership incentive mechanism has been widely acknowledged and implemented in western developed market economics since the last half of 20th century. Domestically, with the exploration of various means to actualize communism,ownership incentive mechanism,such as stock options,managerial ownership and so on,is being or will be introduced to the process of state-owned enterprises reform.Even if a number of the theoretical and empirical accomplishments concerning managerial ownership have been achieved through the study of scholars around the world,it is still in fierce argument that what it brings to us in real corporate operation. In China, Particularly, under the back ground of economic transition and with various unique and inherited issues, it is worthy thorough analysis that whether we should carry out this mechanism universally in state-owned enterprises.The paper sets out by the concept of executive stock option plane, looking for proofs of the theory and demonstration. It is found that quite a few theories,including the theory of principal-agent, agent cost, human capital, and the demonstration researches of western economists have explained, from different sides, the rationality of enterprises implementing executive stock option plan. Though this system has certain negative effect,it is an efficient kind of incentive system on the whole.But in practice,the function of executive stock option plan has been weakened because of the immature conditions of our country and the listed companies, By doing careful research on the executive stock option plans of the listed companies in our country, the author sum up and summarize the problems.In order to promote the implementation of executive stock option plan, the author studies the countermeasures of improving the institutional environment against the problems. Last but not least, the paper, according with the practical experience both at home and abroad, gives principles and methods of executive stock option plan at the present stage.