Corporate Governance and Remuneration

Running head: CORPORATE GOVERNANCE AND REMUNERATION
CORPORATE GOVERNANCE AND REMUNERATION
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Author Note

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CORPORATE GOVERNANCE AND REMUNERATION
Executive Summary
This report is based on the analysis of the corporate governance of the organization and the
ways by which it affects the remuneration that is provided to the executives and the CEO.
The effect of remuneration on the level of corporate governance is also analysed in the report.
The issue related to corporate governance is described in the report in detail. The ways of
reviewing the remuneration process of the organization and providing transparency to the
shareholders is also analysed in the report. The review process of corporate governance is
discussed in detail and recommendations are also made based on the improvement of
remuneration related issues.

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CORPORATE GOVERNANCE AND REMUNERATION
Table of Contents
Introduction....................................................................................................................3
Description of the issue..................................................................................................3
Basis of review of the remuneration of executives........................................................5
Critical review of the governance of organization.........................................................8
Recommendations..........................................................................................................9
References....................................................................................................................10

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CORPORATE GOVERNANCE AND REMUNERATION
Introduction
Corporate governance is related to the system of the rules, processes and practices
which direct and control the company. The process of corporate governance is related to the
ways which the organization balances the interests of the various stakeholders including,
management, suppliers, customers, shareholders, financers, community and the government.
Corporate governance also aims at providing the framework which helps in attaining the
objectives of the company. This takes into consideration all the major aspects of management
which include, action plans, corporate disclosure, and measurement of performance (Banik,
Gupta and Bhaumik 2016).
The corporate governance related process of the organizations are mainly influenced
by the board of directors. The board of directors are considered to be direct stakeholders of
the company. The directors are chosen by the shareholders of the company and are appointed
by the other members of the board. The major task of the board is to make the important
decisions which are related to the appointment of the corporate officers, dividend related
policies and the compensation of the executives. The responsibilities of the board are related
to the decisions that need to be taken related to environmental and the social concerns along
with the financial decisions of the company (Appiah and Chizema 2015).
Description of the issue
The compensation or payment that is made to the executives is mainly composed of
financial compensation or non-financial rewards. This is a mixture of the salary, shares,
bonuses paid to the various executives of the organization. The major principles related to
executive compensation are described below,
The compensation provided to the executives need to be aligned closely with
the long-term interest of the shareholders with the corporate strategies and