Listed Company Executive Stock Options (eso) System Theory And Empirical Research

Executive Stock Option (ESO) is an incentive system formed in the enterprise management after introducing the concept of Stock Option, refers to a type of right for managers from enterprise owners to claim certain quantity of general stocks at a previously determined price within the agreed period. This Stock Option in the nontransferable option to particular employees such as high level managers, which is set by the company.ESO can be said to be an innovation of assignment. Only if the executives make stockowners' wealth increased can they get the gains. ESO has been one of the most effective incentive systems since 1980's, as a long–term incentive method which combines operator' gains with the enterprise growth. Thus, during the course of our reforming the enterprise system according to western theory, we realize advance entrepreneur incentive system operated in western companies worthy studying.On the base of enterprise, entrepreneur and human capital theories of western economists, a deep analysis on theoretical of Executive Stock Option (ESO) is given in this thesis. Questions arisen in the operation process of ESO is the key of the thesis. The aim of studying is to construct an ESO system, raise management level of company and train professional managers in China. In the first section, the ESO of America, a matured model is analyzed thoroughly, including the key points of ESO and the evaluation system etc. The second section gives a positive analysis on the effect of executive managers holding stocks, the necessity of processing ESO in public listing company and the main restricting factors of constructing ESO in China, then five suggestions are given, especially the evaluation system of ESO is written in detail.