China's Enterprises To Implement The Idea Of ​​equity Incentive System And Accounting Treatment Of A Number Of Issues Discussed

Begun with the development of Chinese pay system from 1949, coupled with the evolution of the American pay system, the article expound the development of Chinese stock incentive system, at the same time disclose its' problems. Due to the necessity of constructing ESOP and ESO, the article spends a lot of words introducing ESOP and ESO and their accounting dealing. Finally, the obstacles and solution of the stock incentive system, which will be exert in China is put forward.Payment system has closely relevance to the economic system as well as economic development level of a country. Since the construction of China, the salary system changed from supply system to the score of salary system, the salary for position stage added stipend system, position salary, and the salary for position stage added bonus system. In marketing economy, with the appearing of stock system, Chinese enterprises try to stock plan. However, the plan fall short of the expect ion of its origin. The main reason is the inadequate knowledge of the stock incentive system as well as the poor environment of its execution. Also, we can learn some useful experience from the evolution history of America. Stock plan is composed of a lot of forms. According to the practice of our country, the article pays much more attention to the Employee Stock Option Plan (Esop) and Executive Stock Option (Eso). An employee who has served for the company for several years can get some kind of expected interests through Esop, which is helpful for moving employee. Eso is the special right for senior managers to buy stocks of the company with the special price. It is a kind of long-time incentive programs. For the basic salary system and bonus system have been developed completed and Esop and Eso are fresh for our country, the article spends much words to introduce them, included conception, economics explanation, accounting dealing.There are many obstacles for stock incentive system in China. The article cites some problems and reasonable ways to avoid, mainly from operation, laws, enterprises' system. In a word, combined conception withsystem' s creation completely is the right way to overcome the obstacles of execution of stock incentive system.In the end, the article point out that the three principles should be obey when design the pay system include the stock plan.