Employee stock options （ESOs） have become an integral component of compensation in the US. In view of their significant cost to firms, the Financial Accounting Standards Board （FASB） has mandated expensing ESOs si...Employee stock options （ESOs） have become an integral component of compensation in the US. In view of their significant cost to firms, the Financial Accounting Standards Board （FASB） has mandated expensing ESOs since 2004. The main difficulty of ESO valuation lies in the uncertain timing of exercises, and a number of contractual restrictions of ESOs further complicate the problem. We present a valuation framework that captures the main characteristics of ESOs. Specifically, we incorporate the holder＇s risk aversion, and hedging strategies that include both dynamic trading of a correlated asset and static positions in market-traded options. Their combined effect on ESO exercises and costs are evaluated along with common features like vesting periods, job termination risk and multiple exercises. This leads to the study of a joint stochastic control and optimal stopping problem. We find that ESO values are much less than the corresponding Black-Scholes prices due to early exercises, which arise from risk aversion and job termination risk; whereas static hedges induce holders to delay exercises and increase ESO costs.展开更多
In this paper, we conduct research on the enterprise management and the related employee incentive mechanism under the environment of enterprise social networks. As the sharp change in the environment, the enterprise ...In this paper, we conduct research on the enterprise management and the related employee incentive mechanism under the environment of enterprise social networks. As the sharp change in the environment, the enterprise how to win the competitive advantage for a long time which caused many strategic management thinking, to promote the new development of the theory of the strategic management. Our designed mechanism will enhance the management activities and promote the general value of the employees which has significant meanings.展开更多
In this paper, we conduct research on the applications of humanism management thoughts and positive incentive on contemporary enterprise management activities. The success or failure of an enterprise, it has connected...In this paper, we conduct research on the applications of humanism management thoughts and positive incentive on contemporary enterprise management activities. The success or failure of an enterprise, it has connected with the enterprise staff. Modem enterprise to make the enterprise in the competitive market of the brand is enduring, its survival is to be active play to the initiative, enthusiasm and creativity of employees, emphasizing the subject status of the employees and the leading role which is to emphasize the importance of basic management in enterprise management. Our research provides managers with the state-of-the-art methodology of management which will enhance the overall performance and the efficiency of business operating.展开更多
文摘Employee stock options （ESOs） have become an integral component of compensation in the US. In view of their significant cost to firms, the Financial Accounting Standards Board （FASB） has mandated expensing ESOs since 2004. The main difficulty of ESO valuation lies in the uncertain timing of exercises, and a number of contractual restrictions of ESOs further complicate the problem. We present a valuation framework that captures the main characteristics of ESOs. Specifically, we incorporate the holder＇s risk aversion, and hedging strategies that include both dynamic trading of a correlated asset and static positions in market-traded options. Their combined effect on ESO exercises and costs are evaluated along with common features like vesting periods, job termination risk and multiple exercises. This leads to the study of a joint stochastic control and optimal stopping problem. We find that ESO values are much less than the corresponding Black-Scholes prices due to early exercises, which arise from risk aversion and job termination risk; whereas static hedges induce holders to delay exercises and increase ESO costs.
文摘In this paper, we conduct research on the enterprise management and the related employee incentive mechanism under the environment of enterprise social networks. As the sharp change in the environment, the enterprise how to win the competitive advantage for a long time which caused many strategic management thinking, to promote the new development of the theory of the strategic management. Our designed mechanism will enhance the management activities and promote the general value of the employees which has significant meanings.
文摘In this paper, we conduct research on the applications of humanism management thoughts and positive incentive on contemporary enterprise management activities. The success or failure of an enterprise, it has connected with the enterprise staff. Modem enterprise to make the enterprise in the competitive market of the brand is enduring, its survival is to be active play to the initiative, enthusiasm and creativity of employees, emphasizing the subject status of the employees and the leading role which is to emphasize the importance of basic management in enterprise management. Our research provides managers with the state-of-the-art methodology of management which will enhance the overall performance and the efficiency of business operating.
