On The System Of Stock-based Incentive

In consideration to inspire the enthusiasm of the employees in the enterprises,this paper introduces the history of the system of "stock-based incentive" abroad and how it works in different companies domestic and overseas. The author brings us her ideas of how to improve and set up the system in our Chinese companies when she discusses the status of the system which is carrying on in China.The author holds that Chinese enterprises especially the state-owned companies should quicken the execution of the system of "stock based incentive" which is one of the important compensation incentives,which means employees and proprietors owning share of the company with their labor and intelligence. The author introduces three forms of the system,which are "employee stock ownership plans","supervisors stock ownership plans" and "executive stock option" in the paper. She also introduces how the above-mentioned forms affects enterprises and individuals. The comparison of the application of the system in overseas and domestic companies shows us that how important it is to find out the positive way of applying the system.The author holds that the positive way of applying the system is to show the value of the employees. If we get the right way,employees will stay and devote themselves to the company. With the right way,that company can keep all the positive and smart persons for ever. With the positive and smart persons,the company will keep growing everyday.