A Research On Stock Option Incentive For Joyoung Co. Ltd.

Stock Option Incentive Plan was first brought out from the beginning of 1950 s in America,and became famous during the 70 s and 80 s in the West.From the 1990 s,the plan became popular in the whole world to solve out the interest conflicts of the act of principal-agent relationship.The blossom of Stock Option Incentive Plan was relatively slow in China,with the development of market economic system,the growing efforts that the listed companies paid to the property rights system and conducting rules,the number of those who are planning to carry out the Stock Option Incentive Plan grows fast.The first reason for Stock Option Incentive Plan was to unify the interest of the leading group and the shareholders,to attract more attention to the long-term development,thus decrease some short-term acts.This paper is written based on the principal-agent theory?human capital theory and the encourage theory,considering the present situation of the private enterprises in China,and those who first carry out the Stock Option Incentive Plan during2009-2013 was analyzed.According to statistics,and the analysis of the characteristics of this companies,this paper is focus on the process of how this plan influences them,a common rule for how private listed companies design the plan and choose the related encouraging elements was reached.Last but not least,an example of Joyoung was taken,an analysis of the industry background and development was made.After studying the twice Stock Option Incentive plans Joyoung took and the first of which failed,a final conclusion was made.