Holley Holding Company System Of Executive Stock Options

In the theory about modem enterprise, these problems are considered as "Agent -Question" between the owner and the manager, as well as the ownership and the managerial authority. The question results from the disagreement between the principal interests and agent interests. The key to resolve the "Agent -Question" is to establish the classic prompting mechanism and restriction mechanism. So, how to reform traditional emolument system and establish long-term prompting mechanism has become one of the important contents of deepening Chinese enterprise reforming.First, this paper analyses deeply the theoretical base and principles of executive stock option by using "entrust-agent" theory form economical angle. The paper expounds the practical requirements of executive stock option which is taked as a long-term incentive mechanism. The paper takes Hua Li Stock Holding Group Company as an example. It points out the existing malpractices in traditional emolument system by analysing incentive effect and necessity and feasibility of the implementation of Hua Li Stock Holding Group Company executive stock option. However, Hua Li Stock Holding Group Company has the general character of state-owned enterprises. So we can reckon Chinese state-owned enterprises also exist necessity and feasibility of the implementation of executive stock option system. The implementation of executive stock option system in Hua Li Stock Holding Group Company has fixed Chinese characteristics. Then the paper focused the analysis on difference between the Hua Li Stock Holding Group Company executive stock option plan and the international practice in some aspects. Such as the source of stock, conferment prescriptions, practice prescriptions, sell prescription and general manage. The paper analyses its own successful and unsuccessful points and existing questions. At the same time, a complete set policy and system is put forward. Last, the paper spread out from that. To counter Chinese public company character, it pointed the implementation of executive stock option system should accord withChinese national conditions. Compare with the international implementation of executive stock option system, China has fixed questions on the ways of premise conditions, plan design and implementation mechanism etc. The paper made a detailed analysis of these questions and put forward specific countermeasures.The aim of the paper is to depend on the overseas stock option system, on the basis of Chinese existing practices, probe an executive stock option system to suit the Chinese national conditions so that the long-term prompting questions of Chinese enterprise manager will be solved once and for all and perfect the corporate governance structure.