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'Corporate Governance: The Effect of Directors' Remuneration on the Fair Presentation of Financial Statements and Overall Or - Essay Example

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'Corporate Governance: The Effect of Directors' Remuneration on the Fair Presentation of Financial Statements and Overall Or

10 Findings of the Study 11 Discussion and Conclusion 11 Recommendations 11 List of References 13 The Effect of Directors’ Remuneration on the Fair Presentation of Financial Statements and overall Organization’s Performance Introduction The concept of directors has been existent for a many years prior to the introduction of management sciences as a field of study. Due to the recent plethora of cases pertaining to fraudulent activities, negligence and mismanagement, we now witness the practice of corporate governance as a means to control the activities of management and directorial boards. Contemporary models of corporate governance are efficient in succinctly outlining the tasks and restrictions placed on directors (Hahn & Lasfer, 2011). The purpose of this paper is to examine the concept of directors’ remuneration and whether directors’ pay has an impact on the fair presentation of financial statements and the performance of the organization. ...
e any studies that support or negate a cause and effect relationship between directors’ remuneration and fair presentation of financial statements and with overall organizational performance. The review is supplemented with a case study approach of research in which multiple cases are analyzed and discussed to try and establish the relationship (or lack thereof) between directors’ remuneration, financial statement presentation and performance. The paper concludes with a brief discussion which encompasses the findings of the literature review and the case study approach and provides recommendations for strategy and policy devisors. Directors’ Remuneration The issue of directors’ remuneration has been hotly debated and is a cause of concern for the shareholders of any company. Since the major accounting scandals of the late nineties and early 2000’s, there has been a higher amount of scrutiny on corporations, especially the management and board of directors. This examination of the actions of the boards is defined under several forms of legislation, such as the Sarbanes-Oxley Act (SOX) of 2002 (Gordon et al., 2006) in the United States and the Cadbury Report (1992) in the United Kingdom. For instance, the Cadbury Report has established rules regarding the formation and layout of the board and recommended that the compensation received by directors should be handled by a separate committee and it would decide the suitable package to be provided to members of the board and other top level managers (Conyon, 1997). The reason for such intense scrutiny can at least partially be attributed to the sums of money involved. Take for instance the accounting firm KPMG’s Guide to Directors’ Remuneration 2012, where the data collected on Directors from FTSE100 companies ...Show more

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The Effect of Directors’ Remuneration on the Fair Presentation of Financial Statements and overall Organization’s Performance Student ID Module Name Module Code Table of Contents Table of Contents 2 Introduction 3 Structure of the Report 3 Directors’ Remuneration 4 The Rationale behind Directors’ Remuneration 4 The Structure of Directors’ Remuneration 5 Literature Review 6 The Effect of Directors’ Remuneration on the Fair Presentation of Financial Statements 6 The Effect of Directors’ Remuneration on the Overall Organizational Performance 7 Research Methods Used 8 Case Study Research 9 Research Question 2: Does directors’ remuneration or either of its components (…
Author : alexiekoch
Corporate Governance: The Effect of Directors Remuneration on the Fair Presentation of Financial Statements and Overall Or essay example
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