On The Construction Of China's Stock Option System

In recent years, the executive stock option (ESO) mechanism in China has caused considerable concern. In a number of private enterprises, science and technology enterprises as well as state-owned or state-owned enterprises, such an arrangement has been very common. The reason for many companies in many countries adopting the stock option is that it combines the interests of the operators and shareholders with the company's share price organically. ESO is a combination of a short-term incentive and long-term incentive. Unfortunately, in our country there is no such stock market in favor of the development of the mechanism of stock option, and a complete set of laws and regulations are far from satisfactory. In order to make stock option mechanism work healthily, the support of the relevant legal system is needed, the stock market norms and sound corporate governance structure are needed too. Based on the deep study of the theory of stock option, the pattern and the existing obstacles of the ESO mechanism between China and America are analyzed in this thesis. The suggestions of the construction of China's stock option mechanism are put forward. Finally, several suggestions for the forthcoming implementation of growth enterprise market (GEM) stock option plan are given, hoping to view China's GEM listing as an opportunity so as to make the mechanism of stock options play an active role in the most suitable soil and promote the valuable experience of stock options for the future, so as to pave the new way for the operation and management of enterprises, especially the management of human resources.