The presence of the current financial crises has made investors more determined in handling excess remunerations

The presence of the current financial crises has made investors more determined in handling excess remunerations Essay example
Ph.D.
Essay
Finance & Accounting
Pages 12 (3012 words)
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Name…………………………………………………………………………….xxxxx Institution………………………………………………………………………….xxxx Course…………………………………………………………………………….xxxx Professor…………………………………………………………………………xxxx @2012 Shareholder springs Abstract Recently, there has been backlashes by shareholders against the remuneration of execute directors…

Introduction

Introduction A vote against remuneration is significant if it receives less than 75 percent of the shareholders support. Thus, votes have been on the use recently in protesting against pay increases that are insufficiently linked to performance. For instance, Section D of the U.K corporate governance code sets out remuneration guidelines for both the executive and non-executive directors. According Tricker (2012) section D.1, “the remuneration should be sufficient enough to motivate and attract directors, but a company should avoid paying more than is necessary for this purpose. A significant proportion of the executive director’s remuneration should be structured so as to link rewards to corporate and individual performance.” Section D.1.4 of the U.K corporate governance states that it is the responsibility of the remuneration committee to consider compensation commitments of their directors in the event of early termination. ...
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