China Executive Stock Option Analysis

Executive stock option was given birth in 1970s as a kind of corporation inside stimulant mechanism , the number of which is increasing , at the same time the option given is toward wide subject such as workers at the same time another important change is that stock option is altering its form based on which the premium option ,option attached conditions and option which can transfer the new ones at the different periods have been created .The paper states the option which runs in china nowadays and the reality condition in china ,the writer puts some obstacles and questions onto table and for which some advices have been advanced to settle down these problems. And finally paper provides some projects to promote executive stock option .The paper is divided into five parts the first part describes the development of option and the theory by which the option is supported.The second part introduces the system of executive stock option and the reality condition in China which analyzes the relationship between stock that managers hold and management condition finance index. Finally we concludes that there is little relationship between them. So that is to say our stimulant mechanism is week or the the stimulant system is valid in China . Then we analyze the possibility of operating option in china the conclusion we arrive at is for the sake of short capital market and talent market the implementing executive stock option must be step by step. We can't copy the style of the western country.The third part of the paper presents the condition that we put option into practice. From the positive government policy to the actualization of stock option by all kinds of firms which is totally telling us that the executive stock option has been carried out bit by bit .The fourth part provides the important designation of stock option in Chinawhich contains the source of stock, executing measure and the timing for executing stock ect .The final part of the paper presents the obstacles and difficulties that we might confront and correspondently give the way that resolve the questions put forward before. At last looking back into the progress of the executive stock option we lodge our hope .