StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Executive Remuneration in Australian Companies - Research Paper Example

Cite this document
Summary
Explain how the interests of key stakeholders, including shareholders, should be taken into account in developing an effective regime of executive remuneration for directors and executives of Australian companies.
The regulatory framework of executive remuneration in Australian companies basically depend on the regulated remuneration cycle which consists of four major activities - remuneration practice; disclosure of remuneration; engagement on remuneration; and voting on remuneration…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.5% of users find it useful
Executive Remuneration in Australian Companies
Read Text Preview

Extract of sample "Executive Remuneration in Australian Companies"

Download file to see previous pages

Thus the Australian Government policy goals mainly depend on the remuneration practice, especially the engagement and voting activities of the companies. However this research proposal would demonstrate the shareholders' interest on developing an effective executive remuneration regime for directors and executives and identify an effective remuneration regime in Australia which is needed for development and transparency of the remuneration process and practice in a causal contingency framework of convergence/divergence.

Theoretical and conceptual frameworks on executive remuneration for directors of Australian companies and executives have been developed over the years to support efficiency hypothesis which invariably borders on the need to increase value of the firm in conformance with critical success factors. According to Chartered Secretaries Australia (CSA), directors and executive remuneration levels and structure have often been influenced by the existence of a variety of factors like community and political concerns, rules and regulations, code of practice and guidelines, market exchange rules and accounting standards.

Under the section 9 of the Corporation Act defines remuneration of executive as "remuneration if and only if the benefit, were it received by a director of the corporation, would be remuneration of the director for the purposes of an accounting standard that deals with disclosure in companies' financial reports of information about directors' remuneration" (Australian Corporation & Securities Legislation, 2009). The remuneration to all the executives in an organization can be explained as the aggregate or sum of the payments receiving by all the executives including Directors, CEO, and Managers from a company or a corporation.

Thus it consists of the normal payments to the executives such as basic salary, all incentives, bonus, shares and any other benefits such as allowances. Executive remuneration is a very important element of corporate governance and the level of benefits are determining by the board of directors. The determination of the level of the income of all these key individuals in accompany is a complex process to the

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Executive Remuneration in Australian Companies Research Paper”, n.d.)
Executive Remuneration in Australian Companies Research Paper. Retrieved from https://studentshare.org/miscellaneous/1520565-executive-remuneration-in-australian-companies
(Executive Remuneration in Australian Companies Research Paper)
Executive Remuneration in Australian Companies Research Paper. https://studentshare.org/miscellaneous/1520565-executive-remuneration-in-australian-companies.
“Executive Remuneration in Australian Companies Research Paper”, n.d. https://studentshare.org/miscellaneous/1520565-executive-remuneration-in-australian-companies.
  • Cited: 0 times

CHECK THESE SAMPLES OF Executive Remuneration in Australian Companies

Management--corporate governance

executive remuneration The key objectives of executive remuneration with regard to Recommendations 4, 6, 7, 8 and 9 are discussed as follows: It has been observed that the country has seen unprecedented rise in the salaries of the CEOs and other top management personnel over the years.... The reforms in executive remuneration have been sought by various segments of the society since long, and such changes, are aimed at resolving the issues raised by the them, with regard to excessive payments made to the executives which depict their greed and mismanagement / misappropriation of funds; which is likely to culminate into a financial crisis, affecting a large section of the society as well as the economy....
4 Pages (1000 words) Essay

What Are The Laws Of Directors Remuneration In Australia Are They Adequate, Effective And Efficient To Protect The Interests Of The Shareholders

The different laws concerning director's remuneration in Australia will be taken into concern.... hellip; What Are The Laws Of Directors' remuneration in Australia?... Different laws are applicable concerning director's remuneration in diverse nations.... However, the shareholders and the constitution frames by a company play a major part in determining the laws of director's remuneration in Australia.... In this discussion, the different laws concerning director's remuneration in Australia will be taken into concern....
7 Pages (1750 words) Research Paper

Latest effort at transparency just muddies water by Carolyn Pugsley and Alexandra Module

The main objective of the article is to state the reforms which are adopted by the federal government of Australia in order to disclose the remunerations of seniors executives of companies.... Moreover, this reform will facilitate management of companies with minimum regulatory pressure (Pugsley & Module, 2012).... Analysis (Part C) The legitimacy theory signifies that the remuneration policy adopted by companies is in adherence with rules as well as regulations of the government....
7 Pages (1750 words) Research Paper

The Effectiveness of Remuneration Practices at Origin Energy Limited in Australia

By offering Origin's competitive employees a higher salary and more attractive benefit packages, companies that produce and sell energy products could easily hire and convince these talented people to shift their loyalty and services to them.... The paper "The Effectiveness of remuneration Practices at Origin Energy Limited in Australia" states that Origin Energy is very much committed to maintaining a fair and equitable remuneration practice in order to serve the interests of the business organization and its stakeholders....
7 Pages (1750 words) Case Study

What Is Executive Compensation

In most of the organisation, the corporate governance serves as… In the today's business scenario, compensation of the higher authorities or executives, including the Chief Executive Officers (CEOs) and other officers are generally based During the time of peek economy the company has to endure extra remuneration and compensation for the CEOs.... According to Bertrand & Mullainathan (2001) the remuneration of the CEOs in an organisation is based on the principle of the economic agency model....
6 Pages (1500 words) Essay

How Modern Business Can Remain Competitive

Therefore, it is of crucial importance that companies develop their remuneration strategies to reward performance that will drive the organizational success.... More and more companies from the developed world are moving its labor-intensive production facilities to low labor cost countries in the developing world....
18 Pages (4500 words) Essay

Remuneration Policy and Employee Benefits

hellip; It is important for any management to know about the remuneration and employee benefits being provided to the employee from top to bottom which may certainly help in the future decision-making process in the companies' and employees' interest.... It is important for any management to know about the remuneration and employee benefits being provided to the employee from top to bottom which may certainly help in the future decision-making process in the companies and employees' interest....
6 Pages (1500 words) Case Study

Remuneration Policies for an Australian Multinational Corporation

companies that follow a polycentric approach to staffing try to hire more local managers – HCNs.... hellip; The ethnocentric approach will lead to the situation when most of the company's managers in Malaysia and Hong Kong are australian.... australian managers are sure to maintain and develop corporate culture standards.... This paper describes how designed remuneration policy with further implementation will: on the basic level – help to define the appropriate pay rate, in general – be one of the tools for achieving organizational objectives, internationally – effectively position the company in the world labor market....
12 Pages (3000 words) Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us