Option Rights Program Innovation in One State-Owned Enterprise in China

Chinapsilas economic reforms have succeeded in bringing the desired benefits, particularly in its numerous state-owned enterprises (SOEs). How such reforms are affecting the management of SOEs and their employees are the concerns of this paper. The findings of a triangulated work of survey-interview-document are as follows: (i) SOEs have been operating in a competitive free market environment; (ii) option rights program has entered into the compensation system; (iii) majority of employees keep neutral towards the introduction of option rights program. The authors suggest that option rights program is a feasible start for diversification of compensation package in China. Before the expansion of such program to the whole company, SOEs should establish a real main body when enter into the market.