Research On The Incentive System Of Stock Option In China

One of the characteristics of the modern enterprise is the separation of ownership and management,as the owner,the shareholders can not personally management enterprise due to its own characteristics and limitations,if they authorize professional operators to manage the enterprise,then will inevitably produce conflict of interests between the owners and managers,which will produce the principal agency cost problems.The stock option incentive system,makes the interests of enterprise managers and owners consistent,plays a long-term incentive effect,can stimulate the operators to maximize the enthusiasm and creativity,increase operator risk investment drive,ultimately improve the efficiency of enterprises and achieve a win-win situation to realize the interests of owners and managers.This paper argues that the trend of the development of the stock option incentive system in China is worthy of recognition and encouragement,but the system itself is a system of benefits and risks coexist,with the good will bring great success to the enterprise;on the contrary,if the regulation is not strict,the capital system of external environment and the legal system is not perfect,it will produce a lot of problems,and even lead to bankruptcy.The research purpose of this system is that,as China's company law,accounting and tax laws and regulations continue to improve,continue to enhance the effectiveness of the capital market,and has a perfect corporate governance structure with mutual supervision and power restriction,all make the stock option incentive system truly play an important value in itself,providing services for the rapid development of Chinese enterprises.And the correct implementation of the stock option incentive system will promote the reform of the enterprise system in our country,but also increase an option of long-term incentives for business operators.This paper is divided into four parts,the first part of the stock option incentive system overview,analysis of its theoretical basis,introduce several other models of equity incentive system,finally,lists the advantages and disadvantages of the stock option incentive system and points out the necessity and feasibility of adopting this system in our country;The second part comprehensively analyzes the technical design factors of stock option incentive system,including the subject and object of incentive grants,exercise mode,exercise time,exercise price,the source of stock,the waiting period and the period of validity.The detailed analysis of the various aspects involved in the formulation and implementation of the stock option plan directly relates to the possible problems to understand the implementation the stock option incentive mechanism,in order to the following discuss;The third part briefly summarizes the practice and exploration of Chinese enterprises on stock option incentive system,then use the specific data of ten years to explain the present situation of the implementation of stock option incentive system in China,the focus is to analyze and summarize the legal system and market issues faced by enterprises in the implementation of this system;The fourth part aims at the problems summarized above,and puts forward some suggestions to perfect the stock option incentive system in our country.