Listed Company Stock Option Incentive

Executive Stock Option (ESO) is an incentive system formed in the enterprise management after introducing the concept of Stock Option, refers to a type of right for managers from enterprise owners to claim certain quantity of general stocks at a previously determined price within the agreed period. This Stock Option is the nontransferable option to particular employees such as managers, which is set by the company.ESO can be said to be an innovation of assignment. Only if the executives make stockowners' wealth increased can they get the gains. ESO has been one of the most effective incentive systems since 1980's, as a long-term incentive method which combines operator' gains with the enterprise growth. Thus, during the course of our reforming the enterprise system according to the govern structure theory of the western companies, we realize advanced entrepreneur incentive system operated in western companies worth studying and referring to.On the base of agency and human capital theories of western economists, a deep analysis on theoretical base of Executive Stock Option (ESO) is given in this thesis. Questions arisen in the operation process of ESO is the key of the thesis. The aim of studying is to construct an ESO system, raise management level of company and train professional managers in China.The introduction section recommends the conception and features of the ESO and looks back the practices of the ESO; on the base of the corresponding literature, the thesis analyses the theoretical base of Executive Stock Option, agency and human capital theories and evaluates the shortcomings of the ESO; the importance of the thesis is the analysis of the elements of applying the Executive Stock Option, meanwhile the thesis gives the basic frame of ESO in the companies of the stock;in the end, aiming for the questions and barriers in practicing the ESO in the companies of the stock , the thesis analyses them and recommends the suggestions for them.Wish the thesis could help the companies in the stock apply ESO.