Westland PLC Corporate Affairs: Remuneration Analysis

This report addresses the corporate affairs of Westland PLC, specifically focusing on the challenges related to the remuneration of senior executives. The company faces difficulties in retaining staff due to lower pay compared to competitors, compounded by revenue shortages. The report explores the human resources department's role in addressing remuneration issues, considering employee needs and legislative requirements. It analyzes the dilemma faced by the board of directors, balancing shareholder satisfaction with executive retention. The report references the ICSA terms for remuneration committees and BEIS FAQs, suggesting compliance with the UK Corporate Governance Code. It concludes with recommendations for Westland PLC to align remuneration strategies with stakeholder needs and legislative standards, ensuring effective information interchange and long-term sustainability. The report includes references to academic sources like Al Shobaki, Isa, and Vardarlıer, along with a KPMG resource on executive remuneration and the UK Corporate Governance Code.

Running head: CORPORATE AFFAIRS
Corporate Affairs
Name of the Student
Name of the University
Author Notes:

1CORPORATE AFFAIRS
Introduction
The board of directors of Westland PLC has been faced with a problem associated to the
remuneration of the senior executives of the company. The company does not invest highly on
the payroll of the executives. This is an issue that hinders the effectiveness of the company in
remaining the staff over the competitors who can provide higher remuneration to the arbiter
executives. Following by the move of the company to comply with the shortage in revenue, the
company has experienced diffusers in revenue as a result of which they might have to
compromise on curtailing the pay of the senior executives. The findings sections are aimed at
justification of the logistics with the help of which the company can justify the remuneration that
offered by the company or to identify the legislative requirements that they need to comply with.
Discussion
Looking after the human resource developmental activities is the roll of the human
resources department of any organisation1. Regardless of the nature of activities off an
organisation, the workforce of an organisation is an aspect without which the organisational
activities cannot take place. There are various departments within the management of an
organisation. Among the various division within the management of the company, it is the role
of the human resources department to various needs of the workforce of the organisation. It is
not only the time of the human resources division of an organisation to look at the staffing
functions such as recruitment and selection, but it is also the function is the human resources
1 Vardarlıer, Pelin. "Strategic approach to human resources management during
crisis." Procedia-Social and Behavioral Sciences 235.10 (2016): 463-472.

2CORPORATE AFFAIRS
division of the company to comply with the remuneration and payroll management of the
organisation2. The amount that on employee within an organisation is subject to is determined by
the human resources management assisted within an organization.
The remuneration of employees might vary from one company to another even if both the
Times that are being compared are similar roles. Thus, it is evident that employees would look to
comply with the needs for higher remuneration and stick to the organisation that pays more.
Remuneration is a basic need that supports all the other needs that an individual might have.
Physiological needs, safety needs, need for affiliation, esteem needs and self-actualization needs
are classifications of the needs of individuals. Hence, it is evident that the organisation paying
higher will be about to go hire a candidate. Furthermore, there exists parity in the remuneration
between employees within an organisation. It is evident that the senior executives will be paid
higher than executives, executives will be paid higher than the line managers, and so on.
However, there are still gaps in the remuneration of employees even if they are working in a
similar position. This is determined by the experience that an employee has in an organisation or
the skills of the individual.
The current organisation that is Westland is faced with the remuneration of the senior
executives of the company. While the company is paying lower than their competitors, it can be
said that it is due to the past practices of the company and due to the fact that their company is
faced with issue in the form of shortage of revenue following Brexit. The shareholders are the
2 Al Shobaki, Mazen J., et al. "Impact of Electronic Human Resources Management on the
Development of Electronic Educational Services in the Universities." (2017).

3CORPORATE AFFAIRS
company are satiated that capstan is not being invested in the providing unnecessary and high
remunerations to the senior executives. On the other hand, there is a risk of generation of
dissatisfaction in the executives who could easily jump from one boat to another. Hence the
board of the company is faced with a dilemma regarding the effectiveness of the company in
satiation the needs of the shareholders associated to the company. The aim of the company is to
comply with the needs of the diverse stakeholders associated to the company and thus, the
company have to base the judgements on the legislative requirements and compliances within the
organisation. The company should communicate the concerns to the executives. The loyal
executives are likely to stick to the company on low remuneration. This would ensure that the
board is able to identify the needs with the help of which the company would be able to satiate
the needs of both the shareholders and the senior executives and will further be able to increase
the likelihood of the company bring able to restrain the experienced senior board of directors.
There are standards that are to be followed when it comes to the development of
favourable renumeration plans for the senior executives, the company should comply with the
framework that has been provided in the ICSA terms for remunerations committee 2020 and by
BEIS FAQs on companies with the help of which the aim of the company can be determined3.
The latter present detailed outlines in how to pay the senior executives of a company. The latter
have been mentioned in provisions 31, 36 and 37 of the UK codes of governance (Barnes, 2020).
Following the latter will help in satisfying off the goals of the company. This should be
continued to the all the stakeholders of the company and it will ensure that stakeholders are at
least satisfied with effectiveness in information interchange between them and the company.
3 Isa, Mohd Yaziz Mohd, et al. "Determinants of loan loss provisions of commercial banks in Malaysia." Journal of
Financial Reporting and Accounting (2018).

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Conclusion
On a concluding note it can be said that Westland PLC has been faced with a problem
associated to the remuneration of the senior executives of the company. The company does not
invest highly on the payroll of the executives. The ICSA terms for remunerations committee
2020 and by BEIS FAQs present detailed outlines in how to pay the senior executives of a
company.

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REFERENCES
Al Shobaki, Mazen J., et al. "Impact of Electronic Human Resources Management on the
Development of Electronic Educational Services in the Universities." (2017).
Isa, Mohd Yaziz Mohd, et al. "Determinants of loan loss provisions of commercial banks in
Malaysia." Journal of Financial Reporting and Accounting (2018).
Vardarlıer, Pelin. "Strategic approach to human resources management during crisis." Procedia-
Social and Behavioral Sciences 235.10 (2016): 463-472.
Barnes, C., 2020. Executive Remuneration & New UK Corporate Governance Code. [online]
KPMG. Available at: <https://home.kpmg/uk/en/home/insights/2018/07/ec-executive-
remuneration-and-the-new-corporate-governance-code.html> [Accessed 28 March 2020].