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Directors' Remuneration Packages - Essay Example
Finance & Accounting
Pages 3 (753 words)
Directors’ Remuneration Packages Table of Contents Table of Contents 2 Directors’ Remuneration Packages 3 Reference 7 Directors’ Remuneration Packages Academic scholars have pointed out that companies need to give deeper look at the issues related to director’s remuneration packages in order decrease scope for controversies…
Mallin (2007) has argued that companies need to understand the role of share options on director’s remuneration package. The research scholar has also pointed out that share holder’s confidence can be impacted by the level of remuneration package designed for directors. Hicks and Goo (2008) have pointed out that director’s remuneration package should maintain a proper balance between performance related variables and total remuneration packages. They have also stated that remuneration packages should be designed in order to encourage directors perform at the highest level. Solomon (2011) has stated that remuneration committee needs to play crucial while deciding the remuneration packages for directors in order to avoid future conflict regarding the high pay packages. Gennard and Kelly (2012) have suggested that companies need to measure the influence of shareholder’s interest on remuneration packages for directors. It has been observed that British companies use share options as long term incentives for director’s remuneration package. Lee (2002) has stated that generally British and American companies give 10% to 30% of their equity to a director which is far higher than the global trend. ...
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