Abstract: The efficiency of option incentive contract is affected by system risk which is uncontrolled by manager so as to lead to the distortion of incentive. The paper introduces the idea of relative performance to the design of option incentive based on foregoing research in allusion to the phenomena.Namely exercise price is indexed and mature option income is constructured in option incentive contract.So the paper establishes the exercise price and pricing model of multiple-indexed stock option relatively.Finally,when the efficiency of multiple-indexed stock option relatively is tested by the case,we find two important features: the multiple indexation of exercise price may change the sign of option value and the relativitization of the structure of mature option income may make option value quantitative order difference.

Key words: relative performance, index, incentive mechanism, stock option