ESO in enterprise long-term incentives implementation

Author: Qu Guangsheng Liang Zhifang
Publisher:
Publish Date: 2004-07-01
Features: Currently, Western market economy developed countries have formed a relatively mature system of entrepreneur compensation, which basically achieves a balance between incentives and constraints, as well as a coordination between short-term and long-term, thereby fully realizing the special value of entrepreneur human capital. The stable development of a company relies on a stable and effective management team, and executive stock options (ESO) are a institutional arrangement of residual claim rights in modern enterprises. It refers to the right granted by the company's owners to its operators to purchase a certain number of the company's shares at a predetermined price within a specified period. With the development of China's economy, more and more enterprises have recognized the urgent need to stabilize their senior management talent within the company's own interests and development process, while minimizing losses in agency. Based on the Chinese capital market and institutional supply, this book systematically introduces the basic principles and practices of executive stock options in different types of enterprises in China. Although the Chinese capital market has not yet allocated sufficient space for the operation of executive stock options, practical experience has laid the foundation for their internal implementation in enterprises, demonstrating a new opportunity. This is also the best advice the authors of this book have put forward for the management of enterprises in China.