Operators. On China's State-owned Listed Limited Incentive Stock Options

The inspiration system of the executive stock options is one of the current topical subjects. The major reason is that most state enterprises have undergone stock reform in recent years. In the limited companies on the market, ways have been tried out in order to effectively inspire the executives when the ownership is separated form managerial authority. The companies want to find a good way in respect of reward to the executives so that they will work hard since they care about their own interests. Most of the available ways are mainly focused on the short-term inspiration such as wages, bonus and annual salaries, etc. These can only inspire the executives 'short-term behaviors and they are not good for the companies' development in the long run. Therefore, the system of the executives stock options should be put forward in order to inspire the executives all the time. However, as a new inspiration way, its implementation needs a special environment which is not mature in our country. According to the theory of modern enterprises contract and the problems of the ad -ministrative structure of our state enterprises, this thesis analyzes the necessity of the inspiration for the top executives in our state enterprises. Based on the present situation of insufficient inspiration for enterprise executives, primary adopted inspiration ways, and comparison of limitations of different inspiration ways, it further analyzes the significance of the inspiration system of stock options to the executives long-term inspiration in the limited companies on the market. After analyzing the definition of stock options and its current situation, characteristics and specific conditions for its application abroad, this thesis discusses the present tentative patterns, acquired achievement and existing problems in our country. In the end, it suggests that we should develop our capital market and executive market, improve administrative structure in the companies and revise and perfect some relevant regulations and policies.This thesis attempts to explain the necessity and adaptability of the inspiration system of the.executive stock options put forward in the limited companies on the market. The following are the main points discussed here:The first point is the introduction. This part focuses on the explanation of the reason why it is important to inspire state enterprise executives and the comparative advantage of the implementation of the executive stock options.In the second place, the relations between inspiration and needs are discussed on the basis of western inspiration theory. Although the executives have some higherneeds, they still attach much importance to economic benefits. That is to say, economic inspiration is still important to the executives.Third, after explaining the concept of executive stock options and its functioning mechanism, this part mainly analyzes the implementation of the system of the stock options in the U.S., Japan and Europe. Some people may misunderstand the system of the stock options because of the financial scandal from some big companies in the U.S. in resent years. Therefore, as a new inspiration system, its implementation should be in harmony with the social policy, law and environment.The fourth part focuses on the present situation of the inspiration to the executives in our state limited companies on the market. In respect of current situations of the inspiration and the common inspiration ways, there may exist the following problems: on one hand, the inspiration to the executives is insufficient; on the other hand, the inspiration is mainly focused on short-term inspiration. This part further discusses two big issues: one is the detailed introduction of the three main patterns of the tentative system of the executive stock options in the state limited companies on the market; the other is about the questions ready to be solved in the course of the implementation of the inspiration of the stock options in our country.And then, in the fifth part, writer gives some suggestions abou...