An Empirical Study on Validation of the Stock Option Incentive in the listed Companies in China

The reform of non-tradable share and the relevant law and rules provide a good opportunity for solving the problems of stock option incentive. This paper has an empirical research on the stock option incentive for the senior managers in the listed companies that had finished the reform of non tradable share from 2005 to2008, and analyzes the validation of the stock option incentive system. At last,it makes a conclusion:At present, the stock option incentive for the senior managers in the listed companies in China takes a positive effect on improving the performances of the listed companies, but the rationality of the stock option incentive system need to be adjusted.