On Chinese Legal System’s Improvement of Stock Option

The stock option system derived from America, and was introduced to many countries and regions of the world and played a positive role in the economy development, perfecting corporate governance structure and incentive and restraint mechanism, and increasing the profits of companies and their shareholders and executives for many years. Because of the absence of relevant laws and regulations, the practice of Chinese stock option system exposed many problems instead of positive effect which it should make. This article mainly from the legal point of view to discuss the stock option system itself, describe the experiences of the other countries and regions’ practices and legislation of the stock option system, summarize the problems of existing practices and legislation of Chinese stock option system, and puts forward suggestions on its improvement.