Thermal Power Construction Enterprises After The Reform Of Stock Option Incentive Mechanism

It is proved that Stock Option System is an effective incentive mechanism in western industries, which keeps senior manager's interest closely linked with enterprise's performance, makes them interested in enterprise's long-term business performance for the purpose of his own interest, and encourages them to work hard in an attempt of gaining more income as possible as they can. In enterprise reformation in China, how to establish an effective incentive mechanism for senior managers is still a big problem. At present, there are mainly two forms in enterprise operator's salary system: salary + bonus system and yearly salary system. Salary + bonus system is a short incentive mechanism, which easily causes operator's short behavior, while yearly salary system is short of justness and wealth effect, and doesn't completely change with achievement, so it is unobvious in incentive effects. The same circumstance and puzzlement are also faced by the thermal power construction enterprise whose system is about to be reformed. With the further intensification of state-owned enterprises reform, the government policy clearly states that stock premium shall be given to the following three kinds of people: managing class, scientific and technical personnel and employees with outstanding achievements, which showsdirection for the further perfection of senior manager's incentive and constraint system in China. This article, basing on the use of foreign enterprise stock option system, makes analysis and exploration on how thermal power construction enterprises with system reformed implement stock option system on senior managers. Introduction of this article takes the incentive mechanism problem exposed in the courses of downsizing for efficiency in provincial electricity-building fifth company subordinate to some electric power company in southwest area as clue, and advances the complicated and strict topic on how thermal power construction enterprises with system reformed implement stock option system on senior managers. Chapter Ⅰ mainly introduces the general situation, characteristics and reformation development prospects of development prospect of thermal power construction enterprises. Chapter Ⅱ mainly introduces the concept, theory, type and design model of incentive mechanism. Chapter Ⅲ mainly analyzes the type of the stock incentive mechanism and the operation design of the stock option . The last chapter uses the experience that enterprise both at home and abroad puts stock option incentive mechanism into effects and takes the actual conditions of thermal power construction enterprises into account, to innovatively offer operational design scheme of incentive model of "yearly salary system (deduct) + stock option (with cash)" from managing class and project manager class, which provides reference for thermal powerconstruction enterprises with system reformed in incentive mechanism design.