THE IMPLICATIONS TO THE CHINESE ENTERPRISES FROM MICROSOFT—USE ESO AS MAIN INCENTIVE OR NOT?

摘要

In July 2003, Microsoft made an announcement that it would completely issue real stocks to top managers as incentives instead of traditional stock options as before. The problem raised here is whether the action of Microsoft means that the age of stock option is over. This paper mainly studies the implications from Microsoft to the Chinese enterprises, and discussed whether it is worthy of still using the executive stock option (ESO) as one incentive for CEO of Chinese enterprises in the process of Chinese enterprises' reform now.