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This study extends the monitoring effect of employee profit sharing and stock option to the case of corporate earnings measurement quality. It is argued that employee profit sharing and stock option plans are useful to reduce the management opportunistic selection of accounting methods and estimates for self-serving purposes. In this context, the role of employee profit sharing and stock option plans are discussed as a significant monitoring policy. Five different propositions are discussed for the monitoring effect of employee profit sharing and stock option plans on corporate earnings measurement quality. These propositions include the individual and joint effects of employee profit sharing and stock option on earnings measurement quality as well as shareholders' awareness of the monitoring effect of these plans. The theoretical and practical applications of these propositions are discussed.