Methods to Evaluate Executive Performance: Seek Group vs Ambition Group

Seek Company
T218 Group assignment task
Specification: ACC702 PG – Managerial Accounting
Name of the Author-
University Name-

Table of Contents
EXECUTIVE SUMMARY........................................................................................................3
INTRODUCTION......................................................................................................................3
REVIEW OF TOPIC AND REVIEW OF LITERATURE........................................................3
Company review........................................................................................................................5
CORPORATE GOALS..............................................................................................................6
ASSESMENT OF PERFORMANCCE OF SENIOR EXECUTIVE........................................6
ALLOCATION OF EXECUTIVE REMUNERATION...........................................................8
PERFORMANCE FROM A SHAREHOLDER’S PERSPECTIVE:........................................9
COMPANY EPRFORMANCE VERSUS EXECUTIVE PAY................................................9
SUMMARY OF FINDINGS...................................................................................................10
ANALYSIS AND COMPARISON OF REMUNERATION METHODS USED..................10
CONCLUSION........................................................................................................................11
REFERNCES...........................................................................................................................11
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EXECUTIVE SUMMARY
The report focuses on the dealing with the different methods which public company
uses to evaluate the executive performance. There areVarious methods like the balanced
scorecard, management by objectives, human asset accounting, and the graphic rating are
discussed. An analysis is made of the methods used by the two companies in the line of
commercial and professional services, namely the Seek Group and the Ambition Group. The
analysis have shown that the balanced score card method used by the Seek Group had
provided long lasting and sustainable company growth. Whereas the management by
objective method used by the Ambition group has failed to achieve good results and is unable
to revive the company from declining growth.
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INTRODUCTION
The current report studies the different methods available to the company to evaluate
the performance of the executives. The success provided by these different methods in terms
of shareholder return and management motivation perspective is also studied. The corporate
goals of the company under discussion i.e. Seek Group are researched with the help of the
statements of chairman and CEO. The same is done for the competitive company named
Ambition Group. Both the companies are in the industry of commercial and professional
services. The initial section details the various options available to the company to evaluate
the managerial performance and set remunerations. After this, the review of company is
made, that includes the details of remuneration committee, membership, executive
remuneration allocation, etc. are analysed. A conclusion is made as to whether the company’s
performance is being improved because of the remuneration programme. A comparison
relating to the remuneration policies of both the companies and the success attained is made.
The best method among the both is mentioned thereafter. The conclusion is placed at the end
of the report. It mentions the company that has undertaken the best policy and how it has
helped the business to achieve success. This report has been prepared on the basis of the
financial details, annual report and remuneration report of Company.
REVIEW OF TOPIC AND REVIEW OF LITERATURE
All the organisations of Australia that are publically listed need to form a
remuneration committee. The role of this committee is to formulate strategies to evaluate the
performance of the executives of the company and at the same time set the basis for
remuneration. The various methods are being used by these remuneration committees to
measure the performance of the executives. These are mentioned as follows:
 THE BALANCED SCORECARD: This method tried to evaluate the performance by
bringing a balance in different components. The company’s performance is analysed on the
basis of four different components. If there seems any improvement in the overall
performance based on these components, the managers are appraised with better incentives.
Else, any declining performance sets the executives’ bonus at stake. The different
perspectives among which a balance is strived to be achieved include:
o Financial perspective: The main growth area as assumed here is that of profit made and the
market share captured. The performance is assumed to have improved, if both these
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