China's Listed Companies In The Implementation Of Stock Option Incentive System

Stock option is one of the research achievements of modern management theory, and it has been applied widely in the western countries. As a stimulation system, Stock Option has the advantage in the stimulation for the operator, lower agent cost, improvement in administration structure, and the cultivation of manager market. But meanwhile, the abuse of it will be harmful to the stockholders' interests, company values, and even the whole securities market. In spite of this, to China's companies, especially the IPO companies, it is inevitable to introduce the Stock Option.Based on the theory and practice of western countries' implementation of stock option, this paper has demonstrated the development of stock option in China. The establishment and improvement of Stock Option, will be a systematic project, and needs the appropriate environment. Therefore, this paper then discusses the legal and policy obstructions that China's implementation of Stock Option have met, and provides the specific solution accordingly. Recent foreign theory and practice have demonstrated that it is necessary to notice the limit of Stock Option, and the effective stimulation mechanism can be established only when the specific condition is taken into consideration. Therefore, to introduce Stock Option in China, based on the experience and lessons of the western countries, the construction of the corresponding systems must be quickened, and thus the Stock Option, which can be suitable for China's practical environment, can be devised.