Typically, it is a combination of salary, incentives, and shares of and call options on the stock of a company, ideally configured to consider the government rules and regulations; a company’s goals/strategy and its executive’s desires, tax law and recognitions for the performance. Executive compensation is viewed through the observable outcomes. It should be designed to give appropriate and befitting incentives. Many shareholders do not want or expect executives to take risk with an aim of getting large profit; in fact nowadays there is a significant emphasis on risk control and strengthening of audit committees to ensure that any risks are understood, assessed and managed properly. The financial collapse in 2007 has changed shareholders’ perception in the light of many ‘reckless’ actions taken by executives, particularly in the financial services sector. That is why the compensation of chief executive officers has increasingly been receiving a lot of attention. As basic salaries are not viewed as an adequate method of influencing the performance of the top executives, the other, different types of rewards were brought in. It is feared that top executives, driven by high profits, were/are acting in their own and not a company’s shareholders’ interests thus encouraging the separation of control and ownership in modern companies. That is why Remuneration Committees have now changed inventive plans to ensure that they do not reward short term behaviour or aggressive ‘risk taking’. The executive remuneration or compensation landscape has greatly and rapidly changed during recent years with executive pay remaining a focus point for the UK Government as well as European Commission, shareholders, and media. Draft new rules and regulations will give shareholders new powers to vote down pay arrangements and alter the way organizations will report on the remuneration of directors, which will considerably alter the environment of executive remuneration. Taking into account the changes in the attitude to the remuneration brought about by the last recession and current tightening legislation, the aim of his research paper is to analyse the correlation between Executive Remuneration and a firm performance. 1.2Aims and objectives 1.2.1Aims of the Study To identify and discuss contemporary issues in Executive Remuneration topic; To determine the impact of Executive Remuneration on a firm’s performance To access executive remuneration and its impact on a firm’s evaluation To establish the correlation between Executive Remuneration and firm’s performance. 1.2.2. Objectives of the Study To evaluate the arguments in Executive Remuneration To evaluate the impact of the Executive Remuneration on a firm’s performance using the following proxies: - Return on Assets - Return on Equity -Dividends Yields Share price. To verify the type of correlation between Executive Remuneration and firm’s performance. 1.3. Main research questions The main purpose of this research is to determine the correlation and the impact, if any, of Executive Remuneration on a firm performance; hence this work is aiming to answer the following questions: What are the determinants of Executive Remuneration? 1.3.1 Objective 1- the determinants for executive
JANUARY 2013 LONDON SOUTH BANK UNIVERSITY ACADEMIC YEAR: 2012/2013 MODULE TITLE: Research Methods Module Co-ordinator: Mr Yousuf Khan STUDENT: STUDENT Number: DISSERTATION PROPOSAL: EXECUTIVE REMUNERATION AND ITS CORRELATION TO A FIRM PERFORMANCE Chapter 1: Rationale for research The rationale of the research is based on the need to establish the role of stakeholders, legislation and executives in determining the executive remuneration…
The importance of gender diversity has been found to be profound, increasing performance and success, and decreasing failures due to homogenous decision making processes that neglect various perspectives that would impact the direction that a company will take.
The paper investigates the effect of the balanced scorecard on the performance of the for profit organisations. Balanced scorecard is being used by several organisations in order to improve the overall output and performance. It is used as an important strategic tool which facilitates the organisation in the process of formulating and devising effective and efficient strategies.
Researchers have devoted a lot of attention to CEO duality and firm performance. However, for Kuwaiti companies, this area has yet to be explored. The present study explores the relationship between CEO duality and firm performance in the Kuwaiti context. The conclusion reached in this research work is that financial performance and CEO duality have a negative relationship with each other.
First of all, I received so much inner wisdom and courage from the God Almighty, without His mercy, this would have not been possible for me. For that I am ‘thankful’ to God. Undoubtedly, my honourable Supervisor Mr. Name of Supervisor considerably supported and helped to complete this assignment.
For the purpose of this study four of U.K’s top P.L.Cs from three different sectors are used and analyzed. This includes two major UK banks namely HSBC and RBS (banking sector); British Petroleum P.L.C. (Oil & Gas sector); and J. Sainsbury (Retail sector).
And these involve several results and different views of how managers operate to attain results. This document is a critical literature review which examines scholarly academic sources. It would involve the examination of scholarly sources to ascertain the determinants of managers' performance.
CEO Pay – a justifiable way of rewarding CEOs? ABSTRACT Compensation benefits granted to the chief executive officers (CEOs) have been of great concern to the shareholders and a regular subject of criticism by the press and media. The concerns and criticisms are not without any reason because such compensation and benefits were not granted to the CEOs in the 1970s.
This study takes a similar shape with the objective of using case study research design to critically study how the practice of corporate governance in five major UK banks have transformed the banks in terms of profitability and growth. As part of the case study, the annual reports of the banks were critically studied, as well as other related literature.
The background will pave way for a discussion of the research problems and the formulation of core research questions and research processes. The chapter will also provide an exegesis to the scope of study and the outline and structure of the research that will be conducted in the entire study.
24 pages (6000 words)Dissertation
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