Improvement and Innovation of Long-term Managers' Incentive Mechanism

Stock option system is first created and carried out by the large and medium-sized enterprises of Western developed countries,and achieves good effect.However,in China,many large and medium-sized enterprises also adopt stock option system,trying to constrain and stimulate managers.But this proves invalid and harmful.Through studying the effect and conditions of Sino-US implementation and the analysis of China's actual situation,it is found that the Western stock option incentive plan should not be copied directly in China.Instead,China should make further innovation and improvement,with the incentive system of stock option as the basis,to form a constraint and incentive mechanism in most enterprises.