The Stock Options Listed Companies In China Use

Stock Option (which is known as Executive Stock Options. and it is called ESO for short) is effectively solved the problem--principal agent conflicts which trouble the enterprises for long-term,because it has unique advantages of encouraging,unity of purpose and common interests. So the world enterprises, especially high-tech companies and managers sought after stock option. It can also provide a reference of the road for the ongoing reform of China's modern enterprise. With "2006 Equity Incentive Measures for the Administration of Listed Companies" and "State Holding Listed Companies (Domestic) Interim Measures for Implementing Equity Incentive" and "Accounting Standards for Enterprises No.11-shares to pay" issued, accelerating the process of equity incentive of Chinese listed companies. But at the same time, we should see the stock option system is not magic cure for everything. China's national conditions doom our own characteristics. How stating policy,standardizing and improving the country's stock option system,making fit for China stock option incentive plan and taking fully advantage of stock options,those all become the urgent problems of governments and enterprises. In this paper, the incentive stock options. analyzing the stock option system in China is the condition and problems in order to get more Chinese management practice and future countermeasures.