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Executive Performance and Remuneration in Public Listed Companies: A Literature Review

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Added on  2021-05-30

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MANAGERIAL ACCOUNTING 16 Managerial Accounting Name of Student: Name of University: Author’s Note: Executive Summary The main intention of the study is developing a literature review that could be able to evaluate the executive performance along with remuneration for public listed companies across Australia. The main aspects of the report will encompass the effectiveness of the present control system for the selected company and identify the approach for management performance along with the reward systems. The discourse of the study has elaborated on company’s approach in

Executive Performance and Remuneration in Public Listed Companies: A Literature Review

   Added on 2021-05-30

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Managerial Accounting Name of Student:Name of University:Author’s Note:
Executive Performance and Remuneration in Public Listed Companies: A Literature Review_1
1MANAGERIAL ACCOUNTINGExecutive Summary The main intention of the study is developing a literature review that could be able to evaluatethe executive performance along with remuneration for public listed companies across Australia.In order to establish a well-defined review of the objectives, “Tabcorp Holdings Limited” hasbeen chosen for reporting purposes. The main aspects of the report will encompass theeffectiveness of the present control system for the selected company and identify the approachfor management performance along with the reward systems. The discourse of the study haselaborated on company’s approach in terms of encouraging high performance objectives by itsexecutive team thereby analysing whether it has been able to uplift itself in terms ofperformance. The main recommendations of the report have also provided with enhancingperformance measures and reporting improvement as per remuneration reporting procedures.The main findings of the remuneration procedures have been depicted with Target Reward Mix,Fixed Remuneration, “Short-Term Incentives (Variable), Long-Term Incentives (Variable)”,Appointment or Retention Incentives (Variable), Policy Prohibiting Hedging (Variable) andExecutives Shareholding Policy (Variable). It has further depicted that despite a significantincrease in company performance and remuneration, the share price has considerably reduced.
Executive Performance and Remuneration in Public Listed Companies: A Literature Review_2
2MANAGERIAL ACCOUNTINGTable of Contents1. Introduction..................................................................................................................................32. Topic and Literature Review.......................................................................................................32.1 Executive Performance Evaluation and Remuneration in Public Companies.......................42.2 Effectiveness of Control Systems Within the Companies.....................................................52.3 Executive Performance and Reward Systems.......................................................................52.4 Motivation (Overview)..........................................................................................................63. Company Review.........................................................................................................................64. Findings Summary.....................................................................................................................125. Analysis of Remuneration Methods Used.................................................................................136. Recommendations......................................................................................................................147. Conclusion.................................................................................................................................14References and Bibliography.........................................................................................................16
Executive Performance and Remuneration in Public Listed Companies: A Literature Review_3
3MANAGERIAL ACCOUNTING1. IntroductionRemuneration includes various types of payments received for services on employmentincluding compensation which constitutes the bonuses, basic salary and economic benefits whichare provided to the business executives and staffs at the time of their employment. The executivecompensation mainly comprises of the financial compensation along with other non-financialrewards. The typical mixture comprises of call options on the stock of the company andperquisites which are ideally configured for taking into consideration government regulationsand tax law. The different types of analysis associated to remuneration is recognized with diverserange of practices associated to remuneration and the policies which explains the various ways inwhich employees are compensated as per the reference market. The main intention of the study isdeveloping a literature review that could be able to evaluate the executive performance alongwith remuneration for public listed companies across Australia. In order to establish a well-defined review of the objectives, “Tabcorp Holdings Limited” has been chosen for reportingpurposes. The main aspects of the report will encompass the effectiveness of the present controlsystem for the selected company and identify the approach for management performance alongwith the reward systems. The discourse of the study will be also elaborate on company’sapproach in terms of encouraging high performance objectives by its executive team therebyanalysing whether it has been able to uplift itself in terms of performance. The mainrecommendations of the report will be also provided with enhancing performance measures andreporting improvement as per remuneration reporting procedures(Guillenet al.2015).2. Topic and Literature ReviewIn general, the remuneration reports depict that the performance evaluation of “ChiefExecutive Officers” is done on a yearly basis as per their overall performance and pay.Asdiscussed by Li (2017), the most identified concern for the managers and CEOs show that thepayment settings in several ways our mismatching in nature and the remuneration of CEO ishigher than expectations. A benchmark for recording the remuneration of the CEOhas shown thatthe top management of different companies listed in ASX have not considered evaluating theperformance of CEO. This is seen to be having a detrimental effect on the company therebycreating a parity among the pay of the executive and manager. These differences are also
Executive Performance and Remuneration in Public Listed Companies: A Literature Review_4

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