China's Commercial Banks To Implement The Stock Option Incentive Research

Executive Stock Option gives operators the right to distribute in surplus as capital owner and impels operator to maximize shareholder's interests. The bank belongs to the high knowledge and sensitively residual sharing trade. It's performance has close relations with the operator's efforts. Applying the ESO to bank is a kind of effectual encouragement method, which has been verified in the western countries. It effectively attracts talent and promotes the bank achievement.Some enterprises in our country have tried the ESO since 1997 and have formed various kinds of encouragement modes. But these practices only stay in the state-run enterprises. The financial enterprise has not tried yet. Can we impel the ESO in the bank of our country as western bank? Can we guarantee the ESO to reach the ideal result in current environment? Can we design a set of China encouragement schemes? This is exactly the realistic point of starting to write this text.This article explains the basic principle of the ESO and the problem of salary distribution. Referring to Jensen M.C and W.H. Meckling model of analyzing enterprise ownership structure, author study our country environment impacting on the ESO efficiency and get the conclusion: Though the implement of the ESO in bank of our country can change the traditional rigid method of salary distribution, correct nearsightedness of senior executive and excite positive psychology, but because of many environments restrictions, the effect of the ESO was give a great discount. So if implying this encouragement scheme, we must take the road of China in the bank of our country.Referring to western bank experiences, author has discussed the ESO schemes in our bank and designed the feasible schemes, which accords with the realistic objective condition. It is believed that with the development of securities market, financial mechanism and legal rules, this kind of encouragement will exerts a positive influence on the management of talent, the reforming of salary and the sound of mechanism in bank of our country.