Research On Legal Problems Of Employee Stock Option

Employee stock option is a right which the enterprise grants to employees with the purpose of motivation.When employees meet the corresponding performance requirements or other specific conditions,they can purchase a certain number of the company ' s equity or stock rights at a predetermined price.As a financial innovation in the application of employee compensation system and practice,with a strong system superiority,employee stock option is meaningful to easing the modern enterprise ' s "insider control”as a result of two rights ' separation,perfecting the corporate governance structure,improving the efficiency of production and operation,giving full play to the significance and value of the human capital.In order to make sure that the employee stock option system in our country can have a better development,ensure the system's superiority into full play,fully embody the corresponding enterprise utility and social value,the corresponding tax policy should have rationality and pertinence.However,our current individual income tax policy of employee stock options still has a series of problems,including the classification is not scientific,paying taxes on the exercise day,not separately setting preferential tax rate,not reflecting value and pursuit of long-term incentive effect and the existing problems of deferred tax policy.For this,I have proposed some opinions and suggestions on the basis of analyzing the nature and reasons of these problems as well as the related adverse effects,and at the same time,I also take the employee stock option income tax system of United States into consideration.In general,I think the classification standard of employee stock options should be improved,different option plans should have different tax burden design and tax treatment,the"incentive" and "normalization" might be used as the criterion for the difference in tax treatment.I also think we should allow the listed companies to design and implement stock option plans in a free and easy environment without violating the prohibited provisions of laws and regulations.In addition,in order to avoid the problems caused by taxing on the exercise day,I think we should also performed "deferred tax" policy in the level of listed companies.And when calculating the tax,we should separately set up a set of preferential tax rate in order to increase the existing tax preferential as well as ensure the universality of tax preference and tax fairness.Finally,in order to embody the pursuit of long-term incentive effect and the reduce the company's incentive costs,I think wether the company is public or not,their relevant incentive object must meet a certain holding period limit if they want to enjoy the tax preference.The development and perfection of a system is a long and tortuous process,in the context of the current tax system reform,with the improvement of the corresponding tax policy,employee stock option system in China will also get great progress.