Remuneration Report: Managerial Accounting

Running Head: Managerial Accounting
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Project Report: Managerial Accounting

Managerial Accounting
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Remuneration report:
Introduction:
Remuneration is the payment or compensation which is received by the employers
against their services in the business. It includes the basic salary, bonuses and other
economical benefits of the business which an executive get during the employment (Richard,
Devinney, Yip and Johnson, 2009). This report focuses on the remuneration policies of
Sigma healthcare. The policies of sigma healthcare have been compared with the Sonic
healthcare to evaluate the changes and the impact. The main focus has been done on the
remuneration of CFO and CEO of the companies.
Remuneration of Sigma Healthcare:
It is essential for a business to make remuneration policies to pay the compensation
amount to the executives on a behalf. In order to make the policies of remuneration and set an
amount of remuneration, executive performance is evaluated by the business. A business is
required to measure that what amount is getting by the board of members in order to achieve
the goals of the business and failure of the business. The total amount is called remuneration.
The total remuneration of executive brief whether the particular result and efficiency of the
board of member has been maintained in the business or not (Etnier and Chang, 2009).
The main motto of Sigma’s remuneration policy is to ensure that the right talent is
attract, retain and motivate to deliver the strategic priorities of the business. The executive
remuneration is decided by the business against the overall performance of the business in a
year (Our background, 2018). The company offers the performance share to the executives to
compensate the bonus and incentives. The annual report (2018) of company briefs the
performance of the company has not been changed from last year. Company was not able to
achieve the targets and because of it, the salary and remuneration of CEO of the business is
unchanged in 2018 as well.
The remuneration committed of the business monitor the remuneration strategy of the
business timely to ensure that the effectiveness of the remuneration could be maintained and
it motivate the team. The remuneration strategy of the business includes below four principles
on the basis of which the remuneration of an executive is decided.

Managerial Accounting
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Figure 1: Remuneration principle
(Annual report, 2018)
The executives of the business are offered the remuneration on the basis of the bellow
equation to ensure that the best compensation is offered to them against their services in the
business.
Figure 2: Remuneration Equation
The remuneration of CEO and CFO has been compared with the other executives of the
business and it has been found that the STI of CEOs is higher and the fixed remuneration and
LTI is quite lower. The financial performance and non financial performance of the business