ipl-logo

Ethical Issues In Remuneration Of Directors

744 Words3 Pages

Ethical issues in the remuneration of directors
An issue or circumstance that requires an association or person to decide between choices that must be assessed as moral and ethical right or wrong and unethical in the remuneration.
There are many ethical issues with executive compensation .These include whether the compensation is excessive compared against provision of service and whether the compensation process is compromised by independent transparent negotiation.
Issues that can exist in remuneration of directors
Executive remuneration has become one of the key issues in corporate governance and the target for criticism by shareholders and academics over the past years. The problem arises where there is a divergence of goals by company …show more content…

In proposing the remuneration policy, the remuneration committee should ensure that the mix of fixed and variable pay, in cash, shares and other elements, meets the company’s needs and strategic objectives. Incentives should be based on targets that are stretching, verifiable and relevant. The remunerations committee should satisfy itself as to the accuracy of recorded performance measures that govern vesting of incentives. Risk-based monitoring of bonus pools and long-term incentives should be exercised to ensure that remuneration policies do not encourage behavior contrary to the company’s risk management strategy. ( King lll Report principle 2.25 par 151

Show More
Related

  • The 2008 Companies Act And The King IV Code

    768 Words  | 4 Pages

    Introduction This report aims to provide guidance on a board of directors restructuring for De Buys & Sons in accordance with Section 72 of the 2008 Companies Act and the King IV Code. The report identifies the flaws in the current board structure and suggests one that is more in line with ethical standards. To ensure that the business follows moral and ethical business practices, it also calls for the creation of a social and ethics committee. The recommendations made in this report will promote ethical conduct and corporate governance and ensure that the company complies with relevant legislation. Issues with the current board structure

    Read More

  • Dollarama's Code Of Conduct And Ethics

    1673 Words  | 7 Pages

    • Conflicts of interest, including transactions and agreements within which a director, executive officer

    Read More

  • Unethical Behavior In Sports Business

    1293 Words  | 6 Pages

    As ever-growing problem in the anthropocene continues, we can not look past the world of business as being one of the major problems in its demise. What can you do to help the anthropocene? Sports figures now a-days are seen as superheroes and with their influence on everything around them it is their duty to speak out about this epidemic. With their wide grip on the world they could make a positive change. Whether it is the athletes, the companies, or the fans, we must sustain the constant push for change in the world.

    Read More

  • Examples Of Ethical Issues In Lululemon

    1452 Words  | 6 Pages

    When we hear of the apparel retailer, Lululemon, we usually think of really overpriced athletic clothing. Lululemon is a luxurious brand for those who want to invest in high quality athletic clothing. This retail company was originally founded in Vancouver, Canada in 1998. In addition, the founder of the company is Denis “Chip” Wilson, who is no longer affiliated with the incorporation due to his unprofessionalism. Over the past twenty years, Lululemon has faced a couple ethical issues, but their ethical culture has also impacted their relationship with customers and employees.

    Read More

  • Hrm/531 Week 7

    696 Words  | 3 Pages

    Reading Assignment #6 1. In order to keep top performers satisfied and productive, Steve Bates argues, there should be a substantial difference in the variable pay or merit- based salary increases that top performers and poor performers receive. Based on available research the increase needed to catch “anybody’s attention” should be a seven percent or eight percent increase in compensation. It also states that anything below that might be welcomed, but will not lead to substantially greater effort on the part of employees to increase business results.

    Read More

  • Essay On Conflict Of Interest

    1082 Words  | 5 Pages

    Conflicts of Interest The financial principle “Conflicts of Interest” is a situation arising as a result of incompatibility of the desire of multiple parties; moreover it can be viewed from another angle of perspective as a position in which one derives individual benefits from the preceding acts agreed upon in the official capability. Agency problem being conflict of interest incorporated in any association whereby one partner is to act at the benefit or interest of another, which exists between stakeholder’s company and its management, even though it is to the mangers best of interest ,they intend on maximizing the wealth of the stakeholders by making proper decisions. One of the aims of many organizational conflicts are as a result of pressure between one’s motivation to act in on the basis of their own self gain and effort to authoritative rules of the institution to bring back the social esteem back such as morality and justice. The interaction between ethical motivation and self-interest is

    Read More

  • Essay On Unsafe Injections

    1122 Words  | 5 Pages

    Unsafe injections Unsafe injections practice is the main cause of transmission blood borne pathogens, for example, hepatitis B virus (HBV), Hepatitis C virus (HCV). In developing countries, the most common cause of HVC is unsafe injections. Unsafe injections happen through contaminated needles and the conditions of places where injections stored in it. In this case study, the ethical dilemma is related to unsafe injections.

    Read More

  • Mapleton Family Medicine Case Study

    1323 Words  | 6 Pages

    Developing a reputable compensation plan for a medical facility can bring a lot benefits when properly developed. Although the Mapleton Family Medicine has presented nearly an excellent incentive system plan, there are still things that should be considered. 1. Patience: Benefits such as added compensations can actually be extremely complex, requiring a certain degree of legal precautions; therefore, shouldn’t be rushed. The plan should develop over time, allowing appropriate factors to be researched and determined.

    Read More

  • Essay On The Ethical Issues At Walt Disney Company

    708 Words  | 3 Pages

    ETHICAL ISSUE AT WALT DISNEY The Walt Disney Company is a leading international family entertainment and media enterprise. The company is there in the field of family entertainment for more than nine decades. From their humble beginnings as a cartoon studio in the 1920s to the global corporation they are today, the company continues to proudly provide quality entertainment for every member of the family all around the world. They have five main business segments including studio entertainments,, interactive medias, consumer products, parks and resorts and media networks. The subsidiaries within these segments of the Disney Corporation include ESPN, Touchstone, Marvel, ABC, Pixar, numerous theme parks and resorts, and a variety of consumer product lines.

    Read More

  • Pros And Cons Of Executive Compensation

    2411 Words  | 10 Pages

    EXECUTIVE COMPENSATION Executive compensation is a broad term which comprises of financial compensation and non-financial rewards given to an executive from their firm for their services. This package is decided by a company’s Board of Directors (consisting of independent directors). It should be designed in a manner which incentivizes the executives and motivates them to perform in accordance with the company’s goals and its long term growth. These packages generally include a mix of short-term incentives (including salary, annual bonus, benefits, and perquisites) and long-term incentives (including stock options and restricted shares). E.g. Microsoft CEO Satya Nadella received a compensation package of $84.3 million for the software maker’s

    Read More

  • Performance Philosophy Vs Entitlement

    1746 Words  | 7 Pages

    A performance-oriented philosophy is followed; no one is guaranteed compensation just for adding another year to organisational service. Instead, pay and incentives are based on performance differences among employees. Employees who perform well get larger compensation increases; those who do not perform satisfactorily receive little or no increase in compensation. Thus, employees who perform satisfactorily should keep up or advance in relation to a broad view of the labour market for their jobs, whereas poor or marginal performers should fall

    Read More

  • Business Ethics Case Study: The Johnson And Johnson Case

    1262 Words  | 6 Pages

    Introduction The key ethical issues that were presented in this case study were quality control, lack of customer care, responsiveness, and harming the customer. The Johnson and Johnson case may have been seen as a turning point due to many things the company did right. However, there were many ethical issues in this case which will be explored more throughout this paper.

    Read More

  • Reflection On Ethical Decision Making

    1399 Words  | 6 Pages

    One of those most challenging areas I have experience during my current placement is ethical decision-making. We studied many possible scenarios during our Values, Ethics and Professional Issues class, and discussed the various types of decision-making models to help guide us when having to make difficult decisions. While the class was invaluable, because it helped me identify my own biases, and also shed light on how I have made decisions in the past and how I can possibly make decisions in the future, I knew that having to make real-life decisions would not be so cut and dry. This placement has been challenging for me, because my ongoing assignment with one of my supervisors requires constant ethical decision-making, sometimes even in the

    Read More

  • Ethical Issues In Accounting

    1710 Words  | 7 Pages

    Ethical issues in accounting and finance. Summary This task analysis the issue of ethics in accounting and finance as discussed in the International Journal of accounting and finance. Currently, ethics of any firm is an important topic due to the numerous scandals that have taken place in different countries which have resulted in damage to the economy and society.

    Read More

  • Literature Review On Unethical Behavior

    2877 Words  | 12 Pages

    Review of Literature Unethical behavior can tarnish a company’s image and reputation. If a company is unethical, they may have to spend additional money to improve their public image, as well as gain back as many customers as possible. The reason I have chosen to use articles that are quite a few years old and that are not so recent is because I feel that they are very good examples of what I am trying to prove in the terms of ethical behaviour within companies and these specific articles relate well to my chosen topic.

    Read More

More about Ethical Issues In Remuneration Of Directors

Open Document