Research On Stock Option Incentives Of JL Expressway Co., Ltd

Incentive system is the core of modern corporation management.The separation of ownership and management leads to the contradiction between principal and agent,which is considered to be one of the effective means to reduce the agency,cost and achieve long-term incentive effect.JL Expressway Co.,Ltd is one highways state-owned published company.But the company’s long-term incentive mechanism is not perfect.In the traditional salary distribution system which under the condition of improper motivation,executives working enthusiasm cannot be effectively mobilized.They will not own interests with the long-term interests of the company.The stock option incentive which is a long-term incentive mode based on the establishment of the interests of both sides of the principal-agent can effectively solve the problem of long-term incentive in the development process of the company.At the same time,combined with the theory of human capital,we can get the conclusion that the enterprise operator,as a higher level of human capital,should adopt the compound method to encourage.In the process of enterprise incentive,it should be combined with a variety of incentives,to define the property rights of human capital,to share the surplus value of the enterprise,so as to solve the problem of incentive.Thirdly,this paper combines the theory of achievement needs in management and equity theory to expand the theory of stock option system.With the gradual reform of the split share structure reform and the gradual improvement of the securities market,the policy provides a favorable external condition for the JL Expressway Co.,Ltd.According to the actual situation of JL Expressway Co.,Ltd,incentive designs a set of practical stock option,the owner and the manager of the enterprise interests closely linked together,and forms a community of interests,which will help to stimulate the enthusiasm of operators.