Executive Stock Options (Executive Stock Options, referred to as the ESO) is theexecutive compensation system and an innovative incentive mechanisms, for solving theseparation of ownership and to bring modern business the agency problem has a significanteffect. ESO will be the interests of shareholders and managers combine the unique humanresources managers as capital, and enjoy the residual claim in the future. This will not onlyshareholders and managers to reconcile the conflict of interest, but also the companymanager's future earnings and the combination of long-term incentives played a role, its roleand effect has been the West (especially U.S.) are confirmed.This paper describes the related concepts of ESO, and then to principal-agent, humancapital and transaction costs theory, based on the theoretical basis of the ESO. After thepractice in developed countries of the ESO and the development of a more detaileddescription and comparison, combined with the specific situation of the implementation ofESO, come to improve the use of the ESO's recommendations. |