Financial and Corporate Accounting: Executive Compensation Analysis

This report examines executive compensation models and their implications in financial accounting, focusing on the perspectives of stakeholders. It explores various payment structures, including executive compensation, incentives, and the use of restricted shares and long-term stock options, as commonly employed by companies globally. The report analyzes the executive payment models of specific companies, such as Woolworths, AGL, and Beach Energy Ltd, to illustrate practical applications. It addresses stakeholder concerns regarding executive remuneration, including dissatisfaction with reporting models and the transparency of compensation details. The report also incorporates peer reviews and a bibliography to provide a comprehensive overview of the topic. The reviews highlight strengths such as detailed explanations of executive remuneration and the use of positive accounting theory, while also pointing out weaknesses like the absence of detailed remuneration breakdowns and CSR activities. The bibliography includes several research papers that support the analysis of executive compensation.

Running head: FINANCIAL AND CORPORATE ACCOUUNTING
FINANCIAL AND CORPORATE ACCOUUNTING
Name of Student
Name of University
Author’s Note

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FINANCIAL AND CORPORATE ACCOUUNTING

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FINANCIAL AND CORPORATE ACCOUUNTING
PEER REVIEW 1:
Strengths:
This essay discusses about the executive compensation, incentives and other pay. The
essay also states about different models that companies around the world uses for paying their
executives. The two executive payment model (Executive Payment Models and Restricted
Shares and Long-term Stock Options Incentives) that essay mainly discussed are the most
common types of model that companies around the world utilizes. The essay also discussed
about the executive payment models that Woolworths uses for paying to their executives.
Weakness:
The essay did not provide any analytical reference through which it can be stated that the
variation in executive payment in Australia. The essay also failed to identify the effects of
increase or decrease in executive payment on the shareholders of the company.
Comment:
It is advisable that essay should also discuss about other executive payment model that
are used by the companies in Australia. The essay should also states about the change in
executive payment when the companies’ are facing problems.
PEER REVIEW 2:
Strength:
These essay discuses about the executive remuneration. The essay provides more concise
and detailed explanation of positive accounting theory. The essay also represented the way
through which PAT has been implemented in the company. The essay also discussed about
Section 300A of the corporations Act, 2001 and AASB 2. In order to identify the actual use of

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this section the essay used the example of AGL. The 2019 annual report of AGL are discussed
and also provided the information about the remuneration of the executives.
Weakness:
The essay did not discuss about the remuneration breakdown and incentives structure that
executives of AGL enjoys. Due to insufficient information in the annual report, essay failed to
represent the CSR responsibilities of AGL.
Comment:
The report should also stress upon the positive accounting theory and other accounting
theories those companies in Australia uses to measure the CSR activities.
PEER REVIEW 3:
Strengths:
This essay discusses about the concerns that stakeholders carries about the use of
reporting model for Executive remuneration. The essay also discussed about the types of
dissatisfaction that stakeholders possess regarding the Executive remuneration. The essay also
discussed about the three parts that Beach Energy Ltd used for presenting the Executive
remuneration report in the annual report.
Weakness:
The report does not disclosed about the shares of profits that executive’s gets,
information regarding the bonuses and share issue value are also not being discussed. If this
essay provides such information then the viability of this essay would have been increased by
considerable means.

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Comment:
This essay can support the positive side of executive remuneration and can argue by
showing how increase in executive remuneration assists the business to grow.

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BIBLIOGRAPHY:
Fernández Méndez, C., Arrondo García, R. and Pathan, S., 2017. Monitoring by busy and
overlap directors: an examination of executive remuneration and financial reporting
quality. Spanish Journal of Finance and Accounting/Revista Española de Financiación y
Contabilidad, 46(1), pp.28-62.
Gill, S., 2014. Rewards for failure: an explanation for anomalous executive
remuneration. Journal of Indian Business Research.
Peetz, D., 2015. An institutional analysis of the growth of executive remuneration. Journal of
Industrial Relations, 57(5), pp.707-725.