A Case Study On The Plan Of Core Stock Options Of CIMC

CIMC released the stock options plan as early as2008, until September2010, the plan has gone throughseveral changes during two years, the change process and causes worthy of in-depth analysis. In this paper,CIMC as a case study for analysis of the problems of the Group’s stock options plan, and makerecommendations accordingly.This paper is divided into five parts: the first part describes the background and the significance of thisresearch, related literature reviewed, etc; the second part is the concept definition and the basis of thetheory; the third part introduces the CIMC executive stock options plan; the fourth part focuses on theanalysis of the existing problems in the CIMC executive stock options plan; the fifth section presents thecountermeasures to improve.These paper innovations mainly reflected in (1) caves out of the core stock options on the basis ofincentive stock options, conducts a detailed analysis on the basis of American backdating phenomenon,proposed options back price concept.(2) in order to measures the incentive effects accurately, we need toput forward two concepts: set day and the front indicator, established the basis of these two concepts, usesof relevant accounting methods to arrive at their opposing incentive effects by excluding the self-interestedbehaviour.(3) by compared with accounting treatment and the B—S model, in order to more accuratelycalculates the true value of the group’s executive stock options.