With share prices in China rising again, the economy booming, and the Shanghai Stock Exchange Index hitting five-year highs repeatedly this month, an exotic form of executive compensation is coming back into vogue in Corporate China: the stock option.
Earlier this decade, options generated considerable interest in China, and indeed some were issued. Then, the Chinese market tumbled and the idea took root that options might not be an entirely legitimate way of compensating employees; cash became king, and the incentive option was almost never discussed and rarely used.
