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Managerial Accounting : Solved Assignment

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Added on  2021-06-14

Managerial Accounting : Solved Assignment

   Added on 2021-06-14

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Running head: MANAGERIAL ACCOUNTINGName of the StudentName of the UniversityAuthor note
Managerial Accounting : Solved Assignment_1
1MANAGERIAL ACCOUNTINGExecutive Summary:Executive compensation is one of the most trending topics of business in today’s world. Presently, in this era of economic slowdown, uncertain economic environment, the high executive remuneration has created a buzz in the business environment. Due to this, the present topic report deals with the investigation of the Macquarie group of companies. This report has conducted a robust analysis of the remuneration reports of the company. The various articles relating to the performance measures and executive remuneration have been discussed. The remuneration structure of the company has been revised in order to investigate the remuneration and pay policies of the company. The various ways of calculating long term and short term incentives have been discussed. Certain recommendations have been made which would assist the company in assessing the true executive performances of the company executives.
Managerial Accounting : Solved Assignment_2
2MANAGERIAL ACCOUNTINGIntroduction:Executive remuneration has long been in the public spotlight for a long period of time. It hasagain grabbed the public headlines due to the recent upsurge in the pay packets of the AustralianCEOs. It has been reported that the Australian CEOs are now earning a mammoth 78 times more thanany Australian worker or employee for that matter. On the other hand, going by the same statistics, itcould be seen that on the other hand, an average Australian earns a paltry $0.86 dollars. Australia’stop executives today earn on an average of 4.75 million dollars or as mentioned above 78 times as anaverage Australian worker. Moreover, the earnings of the CEOs have notched up higher to astaggering 46 percent faster than any typical worker’s income. These differences have been compiledfrom the noted Corporate advisor Conrad Liveris, who has examined the examined the income ofexecutives of top hundred Australian companies. Such high remuneration is completely uncalled forin current times of financial turmoil and fiscal crunch (Sarasa, Dufo and Agustín, 2013). Thisreport aims to delve into the remuneration reports of Macquarie Group of Companies. This reportwould investigate the causes of such high remuneration of executives, the kind of measures used toassess this high remuneration, performance measures adopted by the company including the analysisof the methods of determining both the Short term Incentives (STI) as well as the Long termIncentives (LTI) for the company. This would help in throwing a substantial amount of light upon thearena of executive remuneration in the Australian economy.Discussion:Review of recent studies and reports regarding executive remuneration:Justin Foxx’s article on Executive remuneration (Fortune Magazine)The ability to inspire the organisation’s troops into the bold landscapes of the future makes aCEO great, but how does anyone measure the CEO’s performance in this regard. There are a varietyof measuring the performance of CEOs. It is by quantifying their performances. In the 1980’s in
Managerial Accounting : Solved Assignment_3
3MANAGERIAL ACCOUNTINGAmerica, the way of evaluating a CEO’s performances lay in his ability to meet the consensusquarterly earnings set by the Wall Street Stock analysts. If they missed the targets, it would concludethat a CEO was underperforming (Fortune, 2018). Later it analysed that this procedure of measuringquarterly earnings took up huge amount of time, so a new method was brought up to measureexecutive performances, which came to be known as the ‘Balance Score Card’. It was developed inthe early 1990s by Harvard business school professor Robert Kaplan. The main idea here was therecognition of employee motivation and customer satisfaction and other such less tangible factors, onwhich executives performances depended. An example has been provided below: (Source: Forbes)
Managerial Accounting : Solved Assignment_4

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