| Executive Stock Option was started in America in 1950s as a kind of long-term incentive mechanism. From 1980s to now, Executive Stock Option as a representative of long-term incentive mechanisms has gotten broad applications in America and other developed countries. As a new financial creative tool of modern companies, Executive Stock Option has been used widely to stimulate executives in many stock companies which include many high-tech companies. Because of its active roles in foreign companies, some Chinese state-owned enterprises especially the list companies have also introduced Executive Stock Option. But the enterprises which implemented the ESO didn't operate normatively because of the specific circumstances in our country. The practice doesn't develop without the guidance of theory, so the research of ESO is indispensable. The sufficient research is the strong theoretical basics of practical development of ESO applying in China, is the supervision and standard of practical work. These are the article's background.This article consists of three sections.The fist section is the summary of ESO. This section mainly introduces the conception, sort, significance and limitation of ESO.The second section is the study of the relevant implemental circumstances of ESO in China. Its application is based upon many conditions and has relation to many factors. These factors are classified into macro and micro aspects. The macro aspects include legal factor, market factor, and intermediary in organization. The micro conditions embody in company's characteristics and inside system, executive's characteristics mainly. Then the article points out the obstacles of ESO's implement in China, including company's incomplete administration structure, weak efficiency and restricted legal environment of the capital market. Finally the article proposes that if we want to implement ESO and make better result, we must improve the... |
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