Study On The Incentive Mechanism Of Manager Stock Options

This dissertation aims at analyzing the validity of the incentive mechanism of manager stock options, which focuses on three problems: How does the incentive mechanism of manager stock option run? How to judge its validity? Is it a perfect incentive mechanism? To solve these problems, the article is designed in the following framework: Firstly, the article expounds the origin and background of the incentive mechanism of manager stock options. After that, the article analyzes the functions of the incentive mechanism of manager stock options, which is a new incentive method in new economy eras. Then study the limitation in the mechanism used, especially the environment in China that is unfit to it. Finally, give the way of cultivating effective incentive mechanism of manager stock options. As an incentive mechanism, manager stock options are effective in theory. But we can't get the expected effect, because of in fact not all idealization hypothesis existing. To enforce the function of the incentive mechanism of manager stock options, we must innovate the environment and this incentive mechanism itself.