Executive Stock Option System

How to give entrepreneur incentive and constraint efficiently always concerns academic institution and enterprises deeply. Executive stock option (ESO) which emerged from America initially in 1970s proved to be valid after twenty years development. For this reason, ESO which is requested to put into practice by listed company more keenly than before, is an efficient resolution of state-owned enterprises' poor performance. However, whether the plan will take effect is constrained by many factors such as, user's understanding level of ESO especially it's theory and value, consistent system and feasible operation plan, efficiency of stock market and other circumstantial factors. This thesis tries to settle problems above and show proper use of ESO. There are five chapters in this thesis. The first chapter, stating existing basis of ESO, appreciating plan approximate to ESO implemented in our country and analyzing efficiency of ESO from theory and practice aspects, is analysis of theory and efficiency on ESO. Then comes the discussion on main points of ESO design, including technical key problems such as stock source, amount, strike price. Incentive methods of unlisted company who can't use ESO are settled in chapter 3. Next chapter is about matters such as manager selection, human capital pricing should be noticed when listed company use ESO. The last chapter suggests building system for ESO in growth enterprise market, while referred to ESO rules on