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Evaluation of Executive Performance and Remuneration in Westpac

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Added on  2021-06-17

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This report provides a literature review on evaluation of executive performance and remuneration for public listed companies in Australia, with a focus on Westpac. It includes details of the remuneration committee, allocation of executive remuneration, mix of performance measures used, changes in executive remuneration reporting, and company performance versus executive pay.

Evaluation of Executive Performance and Remuneration in Westpac

   Added on 2021-06-17

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Running head: MANAGERIAL ACCOUNTINGManagerial AccountingName of the Student:Name of the University:Author’s Note:Course ID:
Evaluation of Executive Performance and Remuneration in Westpac_1
1MANAGERIAL ACCOUNTINGExecutive Summary:The aim of this report is to develop literature review on evaluation of executiveperformance and remuneration for public listed companies in Australia. For fulfilling the purposeof this report, Westpac is chosen, as it is one of the top four banks in Australia. It has been foundout that one of the primary goals of Westpac is the minimisation of overall expenses. This isaccomplished by enhancement of productivity and optimisation of bank processes. Westpac hasfollowed an effective remuneration policy to drive its performance for the executives and thegroup. Moreover, standard package of payment is made to the staffs. Based on the officialinformation, the payment scale of Westpac could be identified based on their positions andqualities. However, material factors should be considered at the time of setting the pay policy,particularly shareholder views and staffs pay.
Evaluation of Executive Performance and Remuneration in Westpac_2
2MANAGERIAL ACCOUNTINGTable of Contents1. Introduction:................................................................................................................................32. Review of topic and review of literature:....................................................................................32.1 Executive performance evaluation and remuneration in public companies:.........................32.2 Effectiveness of control systems within companies:.............................................................43. Company reviews:.......................................................................................................................43.1 Details of remuneration committee and its membership:......................................................43.2 Allocation of executive remuneration:..................................................................................53.3 Mix of performance measures used:......................................................................................73.4 Changes in executive remuneration reporting:....................................................................113.5 Company performance versus executive pay:.....................................................................114. Summary of findings:................................................................................................................135. Analysis of remuneration methods used:...................................................................................146. Recommendations:....................................................................................................................157. Conclusion:................................................................................................................................15References:....................................................................................................................................17
Evaluation of Executive Performance and Remuneration in Westpac_3
3MANAGERIAL ACCOUNTING1. Introduction:Remuneration could be defined as the compensation or payment received for services oremployment that constitute of the base salary, bonuses and economic benefits provided to thebusiness executives or staffs during their tenure of employment (Goh and Gupta, 2016). The aimof this report is to develop literature review on evaluation of executive performance andremuneration for public listed companies in Australia. For fulfilling the purpose of this report,Westpac is chosen, as it is one of the top four banks in Australia. The bank has been reviewedanalytically from the perspective of its remuneration committee, allocation of remuneration, useof performance measures, changes in remuneration reporting and company pay against executivepay. In addition, the critical evaluation of the remuneration methods used is conducted. Finally,the report would shed light on providing recommendations to Westpac for improving its overallremuneration reporting procedures. 2. Review of topic and review of literature:2.1 Executive performance evaluation and remuneration in public companies:It is not easy to carry out performance evaluation at the executive level. According toAfrifa and Adesina (2017), the performance of the executives is analysed annually in most of theorganisations. For evaluating performance, better described procedure evaluates the previousperformance to develop future targets for assisting the board committee so that decisions couldbe undertaken regarding future performance and employment of the executives. In this context,Albertsen and Lueg (2014) advocated that effective process of performance analysis depicts pastperformance based on which the future targets are set. This would help in extending support to
Evaluation of Executive Performance and Remuneration in Westpac_4

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