Study On The Application Of Stock Option In High-tech Enterprise

In the knowledge economy era, high-tech enterprise mainly relies on the human capital, rather than on the financial capital. The access to physical capital and the accumulation of wealth are also driven by human capital. Therefore, how to effectively motivate the talents has a strong theoretical and practical significance, which has become the key to the survival and development of high-tech enterprise and affects a country's overall economic development process. The incentive stock option allows the core talented people of high-tech enterprise, which are the senior managers and technical backbone, have a certain stake in the enterprise and then enjoy the residual claim. Practice has proved that this mechanism has better incentives, which can encourage the object striving for the long-term development of enterprise. This paper studies the application of stock option in High-tech Enterprise. Based on the theory of incentive stock option, this paper analyses the Invengo Information Technology Co., Ltd's stock option plan in 2009, in order to be benefit for the theoretical study and practical application.The main contributions of the paper are as follows: (1) Based on the characteristics of high-tech's human capital, we reference to Professor Li Shicong's current value measurement model for incentive object's human capital, which is the basis for the allocation of stock options between the object; (2) Under the specific national conditions of China, we should not simply rely on the stock price to determine the exercise price of stock option. I believe, the indexed stock option is a good choice; (3) We study the case of Invengo Information Technology Co., Ltd's stock option plan, and analyze its positive and negative effects, and find that there could be some improvement in the plan elements, such as incentive quantity, stock source, exercise price and exercise way.