Executive Summary 3
1.0 Introduction 4
1.1 How different Accounting Theories relate to real world scenarios? 5
1.2 Bonus plan hypothesis and executive remuneration 6
2.0 Company overview with Remuneration plans 7
2.1 Telstra Corporation Limited 7
2.2 Harvey Norman Holdings Limited 7
2.3 Remuneration plan and the contracting cost 8
3.0 Corporate Amendments and “Say on Pay” 9
3.1 Global Developments of Cooperation Amendments 11
3.2 Pay on Performance link and “First Strike” 11
3.3 Pay on Performance link and “Second Strike” 11
4.0 Conclusion 12
This report is based on Pay and Performance links, and whether the respective components of the remuneration could be used to align the interests of the managers and also minimize the contracting cost of the organization. We have taken examples of annual reports from 2 different companies and have identified various incentives that are given to its respective executives.
Moreover we have generally argued the impact of “Say on Pay” and the “Two Strikes” to companies. Global development of corporation amendments and financial legislations has also been identified.
In this highly competitive and complex business world, executive compensation and shareholder influence on decision making has been controversial. This has particularly become under public scanner and considerable media scrutiny with the start of the global financial crisis in 2008.
These reasons have lead many countries to introduce new financial and corporate amendments to restrict excessive compensation for CEOS and top management executives. The amendments include corporation amendments wh...
... middle of paper ...
...of Management Journal, vol.57, no.1, pp.94-115.
Mangen, C & Mangen, M 2012, ‘"Say on Pay'': A Wolf in Sheep's Clothing?’, Academy of Management Perspective, 1 May, Viewed on 20th April 2014,
Muir, J 2014, ‘Topic 6: Positive Accounting Theory’, ACC30001/ACC30008 Accounting Theory, Learning materials on Blackboard, Swinburne University of Technology, 09 April, viewed 19 April 2014.
Shin,J,Y & Seo, J 2010, ‘Less Pay and More Sensitivity? Institutional Investor Heterogeneity and CEO Pay’, Journal of Management, vol.37, no.6, pp. 1719-1746.
Telstra Corporation Limited 2013, www.aspecthuntley.com.au, Viewed on 21st April 2014,
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Imagine that you are a teacher and have a classroom full of students that should be paying you attention because you are going to teach them things that are going to make them successful. Next imagine the student not paying you attention all they are doing is looking at their phone so while you are trying to help them out they ignore you.this is the problem that many schools face student just don 't pay attention to the teacher all they do is look at their phone all day. so the main point here is students using cellphones in school instead of paying attention to their education.... [tags: Mobile phone, Education, Teacher, Want]
1644 words (4.7 pages)
- Paying collegiate athletes for their participation in their school’s athletic programs isn’t a logical option and the players are compensated in alternative ways other than actual money. The education and services collegiate athletes receive for their participation is their compensation and will be far more valuable after they’re done competing athletically than any payment they would receive. Also once they graduate they will need to compete in the real world for a job and livelihood, also if the players are talented enough to make it to the professional league colleges are the places were professional teams look for their future players, but only a small percentage of the college athletes... [tags: Education, School, Student, University]
1002 words (2.9 pages)
- ( )( )( ) “A financial statement represents a formal report, showing records of financial activities of an entity at the end of an accounting period, in order to review the financial strength and performance of the entity. Where it summarizes the accounting process and reflects the financial effects of a business’s transactions, and the financial position of a business during a particular period of time. Furthermore it serves as the main method of communicating financial information about decisions that have been made by a business entity to inside and outside parties.” ( ) “People who might be interested in an entity’s financial statements need information on that entity for a variety of pu... [tags: Generally Accepted Accounting Principles]
1081 words (3.1 pages)
- Reading Response 2 In their book Paying for the Party, Armstrong and Hamilton discuss how universities take class differences and class projects of distinct women to define what will be their college experience. In their book, Armstrong and Hamilton define class projects as individual and class characteristics that defines a person’s agenda and class- based orientation. Hence, people with similar class projects, not only shared the same financial and cultural resources, but also the same expectations toward school.... [tags: Sociology, Middle class, Working class]
998 words (2.9 pages)
- Since the dawn of the twenty-first century, performance enhancing drugs have become a religious practice in “the lives of some sport figures.” The use of these supplements have given the user an edge, an edge to perform at maximum capability. Most major athletes all agree on the fact that the competitive drive to win can be quite intense. Besides the satisfaction of personal accomplishment, athletes commonly pursue high hopes of attaining a medal, a college scholarship or the once in a lifetime opportunity to play on a professional team.... [tags: Performance Enhancing Drugs, steroids, sports, ]
1042 words (3 pages)
- Performance related pay is a financial reward given to employees whose work is considered to have reached a required standard or is above average. “PRP criteria can relate to the individual employee, to work groups or to the organization as a whole” (Armstrong, 2002). It is fair to provide people with financial rewards as a means of paying them according to their contribution (Armstrong 1993:86). The primary purpose of performance related pay in any organization is to recruit, retain and motivate the workforce.... [tags: Labor Issues]
1642 words (4.7 pages)
- Effectiveness and performance in organizational activities is a result of paying attention to a number of factors. This factors are not only necessary at ensuring productivity but also at ensuring conflicts are managed, and resolved as per the stipulated organizations ethics. According to Landy (1989), he asserts that we can utilize the field of psychology as well as, `psychology principles and methods to the problems in the work context.’ The latter view by Landy has been expounded by other scholars in the field of organizational psychology and management.... [tags: Leadership, Management, Decision making]
1087 words (3.1 pages)
- Introduction The reauthorization of the Elementary and Secondary Education Act known as No Child Left Behind (NCLB, 2011) has made increasing student achievement and reducing inconsistencies in the dissemination of teacher qualifications a national priority (Guarino, Brown, & Wyse, 2011). Classic fixed salary schedules that consider only a teacher’s education and years of experience have been popular since the 1920’s (Koppich, 2005). This traditional system was developed to counter gender and racial discrimination that was allowed at the time by more unrestricted systems (Dee & Keys, 2004).... [tags: Educational Issues]
889 words (2.5 pages)
- Performance-based Compensation - Pay for Performance Corporations are looking for new ways to improve employee performance as well as remain competitive. Pay for performance is one method some businesses are utilizing to improve employee performance. Performance-based compensation exists when compensation is tied directly to that portion of an individual’s performance that can be effectively measured. There are a number of ways in which this may be accomplished and a number of examples as well how it is applied.... [tags: Job Working Business]
2553 words (7.3 pages)
- Should college athletes get paid more money. There has been a constant debate the past few years on whether college athletes, particularly football players, should get paid. In 1988, the Nebraska legislature passed a bill that would allow the University of Nebraska football players to receive better cash incentives. The bill was later vetoed by Governor Kay Orr, who was governor of Nebraska at the time (O’Toole etal. 2). . The dispute comes from coaches, parents of the players, and the players themselves arguing that universities make money off their own athletes and the athletes, in turn, do not receive any money from that.... [tags: essays research papers]
861 words (2.5 pages)
- Does Having an Offshore Occupation Have a Detrimental Impact on the Dyanamic of the Family
- The Mystery of the Bermuda Triangle
- Margaret Atwood's Oryx and Crake
- Intermountain Healthcare: A Modern Healthcare Ecosystem
- Imperfection and Love in Blake’s ‘The Sick Rose’ and H.D.’s ‘Sea Rose’
- Roe V. Wade: The Issue of Abortion