Study and Analysis of the Implementation of Executive Stock Option of China’s China’s State Enterprises
|Keywords||stock option enterprise executive inspiration restrain company legal person management.|
Since the reform and opening policy was performed in the past more than 20 years, the state enterprises have achieved remarkable performance. However, the unreasonable inspiration mechanism still exists in the enterprises, which prevents them developing for a long time. Therefore, we will study and expound the status on ESO in China in this paper.The executive stock option (ESO) refers to the option right of an enterprise executive buying a company’s stock at a given price within a certain period of time in the future. The theory of modern companies on the disposition of the surplus demand right and surplus control right holds that if an enterprise is made to realize its maximization of profits, great efforts should be made to be corresponding to each other between the surplus demand right of the shareholders and the surplus control right of the manager under the condition of the separation of the two kinds of rights.The theory of entrustment and agent thinks that it is necessary to standardize the manager’s behaviors by certain inspiration restraining mechanism in order to reduce agent cost and moral risk to a great extent.In the theory on property right of manpower capital, it is believed that an enterprise consists of the manpower capital and the material capital, while the manpower capital can increase the value. With the market competitions becoming more and more furious, those executives, as the special and rare owner of manpower capital, have a continuous increase of their actual force in the talks about the enjoyment of surplus demand right of enterprises.The calculation method of executive stock emption (ESO) is discussed from the attribute of accountant calculation and stock option, consequently the theoretical calculation of total value of stock option is determined.In the practical operation of executive stock option in China , there are internal and external environmental problems, including stock market, management market, product market, agency institution, legal environment, management structure of companies and so on as well as various policy problems. In this paper, according to the above problem, some suggestions are put forward, and thereout we will standardize stock market, cultivate high efficiency capital market, accelerate <WP=4>constructing perfect and professional management personal market, perfect relative laws and regulations and improve the management structure of enterprise legal person. Besides, the Government is supposed to strengthen the outside supervisory system of organizations.In short, the implementation of executive stock option (ESO) has a very practical significance for the reform of the enterprises. However, under the present circumstances, the promotion of ESO cannot be accomplished in an action. Instead we should explore the inspiration mechanism of ESO on the basis of the actual status in China.