Analysis On The Effectiveness Of Haisum’s Stock Option Incentive

For a long time,stock option incentive has been regarded as a long-term incentive mechanism, and it has been proved effective by the west economically developed countries.Stock option incentive can well deal with the agency question existing in today’s enterprise produced by the separation of operation rights and management rights. In the case of the effectiveness of stock options giving full play,it can lead to top managers work enthusiasm, to encourage executives to work hard and create greater value for the enterprise.Since the introduction of equity incentive system in China, there are a large number of enterprises explore the implementation of stock option, but because our country enterprise ownership structure, corporate governance structure and other reasons, the effectiveness of stock options incentive is not ideal.This article mainly research the stock option incentive effectiveness of President of engineering science and technology co., LTD.(hereinafter referred to as Haisum).According to the actual situation of stock option theory and the actual situation of Haisum, I summarize the results of experience or recommendations for effective analysis.This article is based on the operating performance of enterprise to reflect the effectiveness of stock options and based on the financial and accounting indicators to measure the performance of enterprise. Through the horizontal and vertical comparative analysis, it is concluded that the effectiveness of Haisum of stock options options is good but not ideal.In view of the above analysis results, the author summarizes the reasons form two aspects of Haisum’s equity structure and corporate governance structure current situation.Based on the above research, it puts forward some suggestions for Haisum to further develop the effectiveness of stock options, and it also has a reference value for other enterprises.Through the study of this article, the following conclusions are drawn:the stock option incentive of Haisum for business performance has a certain role in promoting, but the function is not ideal. Through the horizontal analysis, when the total score of contrast enterprise is in a downward trend, Haisum’s is still rising and ranking in the top, but the Haisum’s scores of development ability and the ability to pay the debt is low.In thelongitudinal analysis, the net asset yield index representing the profitability increased significantly, but the other three indicators of the ability decline or fluctuate.This paper based on the above analysis puts forward related suggestions from the aspects of ownership structure and corporate governance structure.