(Solved) Managerial Accounting - PDF

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
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MANAGERIAL ACCOUNTING1
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.
In order to establish a well-defined review of the objectives, “Tabcorp Holdings Limited” has
been chosen for reporting purposes. 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 terms of encouraging high performance objectives by its
executive team thereby analyzing whether it has been able to uplift itself in terms of
performance. The main recommendations of the report have also provided with enhancing
performance 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) and
Executives Shareholding Policy (Variable). It has further depicted that despite a significant
increase in company performance and remuneration, the share price has considerably reduced.

MANAGERIAL ACCOUNTING2
Table of Contents
1. Introduction..................................................................................................................................3
2. Topic and Literature Review.......................................................................................................3
2.1 Executive Performance Evaluation and Remuneration in Public Companies.......................4
2.2 Effectiveness of Control Systems Within the Companies.....................................................5
2.3 Executive Performance and Reward Systems.......................................................................5
2.4 Motivation (Overview)..........................................................................................................6
3. Company Review.........................................................................................................................6
4. Findings Summary.....................................................................................................................12
5. Analysis of Remuneration Methods Used.................................................................................13
6. Recommendations......................................................................................................................14
7. Conclusion.................................................................................................................................14
References and Bibliography.........................................................................................................16

MANAGERIAL ACCOUNTING3
1. Introduction
Remuneration includes various types of payments received for services on employment
including compensation which constitutes the bonuses, basic salary and economic benefits which
are provided to the business executives and staffs at the time of their employment. The executive
compensation mainly comprises of the financial compensation along with other non-financial
rewards. The typical mixture comprises of call options on the stock of the company and
perquisites which are ideally configured for taking into consideration government regulations
and tax law. The different types of analysis associated to remuneration is recognized with diverse
range of practices associated to remuneration and the policies which explains the various ways in
which employees are compensated as per the reference market. 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. In order to establish a well-
defined review of the objectives, “Tabcorp Holdings Limited” has been chosen for reporting
purposes. 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 will be also elaborate on company’s
approach in terms of encouraging high performance objectives by its executive team thereby
analyzing whether it has been able to uplift itself in terms of performance. The main
recommendations of the report will be also provided with enhancing performance measures and
reporting improvement as per remuneration reporting procedures (Guillen et al. 2015).
2. Topic and Literature Review
In general, the remuneration reports depict that the performance evaluation of “Chief
Executive Officers” is done on a yearly basis as per their overall performance and pay. As
discussed by Li (2017), the most identified concern for the managers and CEOs show that the
payment settings in several ways our mismatching in nature and the remuneration of CEO is
higher than expectations. A benchmark for recording the remuneration of the CEO has shown
that the top management of different companies listed in ASX have not considered evaluating the
performance of CEO. This is seen to be having a detrimental effect on the company thereby
creating a parity among the pay of the executive and manager. These differences are also