Corporate Governance Assignment
9 Pages2666 Words172 Views
Added on 2019-12-18
Corporate Governance Assignment
Added on 2019-12-18
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CORPORATEGOVERNANCE
TABLE OF CONTENTSOUTLINING AND SUMMARISING ARGUMENTS .................................................................3CORPORATE GOVERNANCE ISSUES.......................................................................................3IMPORTANCE OF THESE ISSUES FOR BUSINESS AND GENERAL PUBLIC ...................6CONCLUSION ...............................................................................................................................7REFERENCES................................................................................................................................8
OUTLINING AND SUMMARISING ARGUMENTS The key argument made in the article of The Guardian published on 19 March 2017 isthat large scale organisation of Britain are given warning that they have to face a wave of rebelsin the emerging annual meeting season and a risk of suppression by government for redundantpay-scales unless they depict restraints on remuneration of executives. The IA chief executiveChris Cummings asserted in the article that because the beginning gun is fired on the currentyear's Annual General Meeting season, business firms in UK will perform well to consider thelearning from Brexit. Most of the individual will still hold a feeling that they have notcontributed in the prosperity of the country (Treanor and Davies, 2017 ). Businesses can eitherbecome responsible now and frame a more responsible 21st century corporate Britain or they cancontinue with the past only. The warning made by him shows that key investors are readying fora lively AGM round. Royal London Asset Management aims to vote against any type of longterm bonus schemes that grows the possible maximum pay-scales for executives of firm. Thecorporate governance manager of Royal London has anticipated to vote against projectedincrease in maximum bonuses and long term incentives that are generally consisting of providingexecutive shares as multiple times of their remuneration. She has argued that their default standis to deny the proposal. She has asserted that there should be line for the maximum increase andincrease in bonuses caused due to promotion of executives can be treated in a different manner.She expressed her consent for simplifying the pay-scales plans. The IA chief executive has givenwarning on three areas which are significant growth in total pay-scales for executives,complicated pay deals and fragile relation betwixt pay-scales and performance. CORPORATE GOVERNANCE ISSUESIn the article published in The Guardian, mainly three issues were raised. The first issueis of remuneration of company director and if momentous increases are prearranged for futurepay-scales of executives. Numerous firms still does not know that sentiments of general publicare very strong regarding the excessive remuneration of top managers and executives. Theremuneration of executives have been a hot topic from some time in UK. The chief executives ofBritain are highly overpaid and it is expected that is their salaries are slashed then there will beno negative influence on the economy (Cummings, 2017). The level of pay-scales of majority ofsenior executives are wildly high. The highest paid chief executive Martin Sorrell has to give
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