On Effective Conditions of Incentive Stock Option

Stock option is a prevailing mode of incentive to senior managers in American organizations,whereas it has diversity in deferent industries and deferent firms.We must notice that stock option is only one of incentive modes for senior managers,and is an adjustment of compensation composition of managers when we consider applying the stock option incentive mechanism.Also,we must consider the many unfavorable restrictions to the effectiveness of stock option device.Otherwise,we will not see the expected outcome.