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Corporate Governance and Ethics - Doc

   

Added on  2021-04-17

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Running head: CORPORATE GOVERNANCE AND ETHICSCorporate Governance and EthicsName of the StudentName of the UniversityAuthor note

1CORPORATE GOVERNANCE AND ETHICSa. Executive ChairA company’s details the key remuneration of different policies and practices. Theexecutive remuneration and the terms related to employment of the executive remunerationand the terms of the executive key management are generally discussed in the AnnualRemuneration Report. Remuneration and Nomination Committee helps the Board who isresponsible organizing and reviewing the policies of remuneration that align the remunerationof executives having a control of the long term interests of shareholders (Seipel 2015). TheBoard had accepted Mr. Fernandez Verdes as an Executive Chairman of CIMIC. It is observedfrom the Annual Report that he received his remuneration from HOCHITIEF AG. For theprevious three years, he has been receiving a remuneration of 518,124 in an average. TheReport also lays down a few remuneration principles. It helps to align with group principles andbusiness needs, links the performance to reward and helps in the promotion of the behaviorthat delivers Group sustainability and aligns with the interests of the shareholders. An one-offaward of 1,200,000 SARs was granted to Mr. Fernandez Verdes in 2014. Any advisor providedno recommendation on remuneration (Dai 2017). Mr. Fernandez did not receive any kind ofextra remuneration from the fee pool for carrying out his responsibilities as an ExecutiveChairman. The average annual fees that are payable to the Directors are restricted to the highestannual amount that are sanctioned by shareholders in the general meeting. Mr. Fernandez hadhis key points for the ESA. HE stated that an annual allowance as a way of contributing to hisliving expenses. He had also negotiated with his remuneration in the past few years for the exactreasons and conditions. This was because he wanted to reflect alteration in his roles of both aCEO and the Executive Chairman.b. CEOAs the CEO of a theExecutive RemunerationReport of CIMIC Group Limited in their2017Annual Report, Mr Sharp was an employee at the Reliance Worldwide Corporation. Hisperiod was terminated without any cause. Mr. Fernandez terminated his employment with goodcause by giving a written notice period of 90 days allowing a subsequent. If he had terminatedhis employment without any good cause then a written notice of 12 months (Berhad and S.T.M2014). The remuneration structure of termination period depends on the termination of theemployment. He will be entitled to receive the amount before serving the written notice. Anotice of non-renewal was being produced by Mr. Sharp who was the CEO of the company hadproduced since he was bound to collect his expected entitlements which did not include unpaidperformance bonus and health benefits. Incentives should also be granted to the CEO before histermination. However, being the Managing Director of a company, the annual report of the

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