High-tech Enterprises And Stock Options

Today the high-technology enterprises play a more and more important role in a country's economy. Since applying reform and open policy in China, the high-technology enterprises get great development. The employees of the high-technology enterprises make great contributions to this development. A very important character of the high-technology enterprise is the human resource's great influence. To make the high-technology enterprise get quick development, it is very important to attract and stabilize the talent, and encourage them to make creation, which need a effective incentive mechanism with enough intensity and long time effect-the executive stock option.The effect of the executive stock option in the United States arouse great attention in domestic theory and enterprise circle, and some of enterprises in China began to put it into practice. Due to the recognition, the outside environment and operating method and other factors, the applying of executive stock option in China is not very smooth. This paper combined the character of the high-technology, analyze the incentive mechanism of the executive stock option, the outside conditions it need, as well as the obstructions of the applying of the executive stock option in China, and then the paper presents the method and the policy that we should adopt in order to solve these problems and apply the executive stock option in China high-technology enterprises.