Study On Equity Incentive Programs Of Langold

With social progress and quick development of technology, competitions between enterprises are no longer in business transactions, more and more competitions lie in somewhere we cannot see. Personnel training are becoming increasingly important. More and more companies try their best to reduce the staff turnover in order to keep elites in the company. As the development of the society, employees cannot be satisfied by the increase of the wages and bonus. Because of this, equity incentive program is coming out of peoples eyes. Equity incentive links to stock equity, this way of incentive provides a certain amount of stock equity and set up some conditions. When incentive objects reach the certain standards, company will give stock to them as a bonus. This kind of incentives can greatly promote the incentive object to work hard, to fusion individual value and enterprise value. This kind of incentive will enhance loyalty to companies.In the western developed countries, equity incentive program has tent to mature. Excellent equity incentive program can solve the problem of consignor-agent relationship, and is great for enterprises having a healthy development. In our country, because of the short development period, many companies use equity incentive program but end in failure. Therefore, under the current legal system and social environment, how to formulate a suitable equity incentive plan has become the top priority to the companies.This paper take equity incentive program of Langold as an example, using case study method. We choose financial data from 2009 to 2014 so as to analyses the development of Langold before and after the equity incentive program. The research is focused on the overall performance, the cash flow and debt paying ability. At last, this paper finds out some solutions to the problems which arise from this equity incentive programs.