The Theoretical Base and Effect Analysis of the Executive Stock Option (ESO)

The executive salary system is the main content in the modern company managerial system. The theories of human resources of creation and risky management, of modern contracts make up the theoretical base of ESO. The feature of stock option system is the long-term inspiration mechanism marketing criticist mechanism flexible optional mechanism and sustainable motive mechanism. The enterprises engaged in ESO can form opening stock power structure, continually and stabilize excellent talents, strengthen the company's cohesion, spur the managing group to lay stress on the value of stockholders, low down the directly inspiring capital,low down the agent fee, inspire the managers to bravely shoulder the risk, improve the salary inspiring effect, correct the managers foresight-lacking psychology.