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Thinking on Practising “Executive Stock Option” Salary System in State owned Enterprises

Zhou Jianbo

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Abstract

Most of the state owned enterprises implement the wage system centered around salary and bonus, therefore, the effect of motivation is not so ideal as expected. The aim of implementing ESO, which is an innovation in our nation, is to establish a long term motivation system for business operators. It's of great significance for the reform of state enterprises to attach importance to the problems existing in the practice of ESO and constantly improve the motivation measures for operators.

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What this paper is about

Most of the state owned enterprises implement the wage system centered around salary and bonus, therefore, the effect of motivation is not so ideal as expected. The aim of implementing ESO, which is an innovation in our nation, is to establish a long term motivation system for business operators. It's of great significance for the reform of state enterprises to attach importance to the problems existing in the practice of ESO and constantly improve the motivation measures for operators.

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Available abstract

Most of the state owned enterprises implement the wage system centered around salary and bonus, therefore, the effect of motivation is not so ideal as expected. The aim of implementing ESO, which is an innovation in our nation, is to establish a long term motivation system for business operators. It's of great significance for the reform of state enterprises to attach importance to the problems existing in the practice of ESO and constantly improve the motivation measures for operators.

Key concepts: Salary, Stock options, State owned, Wage, Business, Stock (firearms), Accounting, Finance

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