Listed Company Stock Options Incentive Design Studies

Because a significant characteristic of modern enterprises is that the owners separates from managers,there is trust-agent contradictory.Stock option is a useful long-term incentive,and can solve trust-agent contradictory in some extent.Stock option is a right that the owners give the managers to buy the enterprise's stock in the future by agreed price.Stock option incentive mechanism combines managers' reward with the company's long-term benefit,in this incentive mechanism,managers can ask for enterprise surplus.The advantage of stock option incentive mechanism is that it can change outside executive incentive to managers' self-control and encourage managers giving high light to company's long-term development.Studying stock option incentive is of grate importance.The main content of this paper is as follow:first,summarizes research results of stock option incentive at home and abroad,and introduces its concepts,characteristics, types,theoretical basis and effects;then,designs the elements of stock option incentive, which is made up of grant subject;stock source;encouraging object;period of validity; exercise arrangement;exercise price;grant amount;exercise method;exercise condition, researches focus on exercise price,introduces pricing model for stock option incentive-Binomial pricing model and Black-Scholes option pricing model,in addition, designs pricing model for stock option incentive based on Economic Value Added;last, researches example of stock option incentive for public company,analyzes and evaluates stock option incentive of inner mongolia Yili industrial group co.,1td based on the elements of stock option incentive,and applies pricing model for stock option incentive based on Economic Value Added.