An Analysis Of One Major Issues Of Corporate Governance

1950 Words8 Pages
Abstract This essay provides an analysis of one major issues of corporate governance. Executive Remuneration had been heavily criticised, as senior executives have been receiving generous packages, despite corporate collapses and failures of company performance, which could be seen as a lack of corporate governance. To determine whether huge executive remuneration pay affects the financial performance of the company, CEO remuneration based performance, financial performance and ownership of concentration was examined. The data clearly shows that companies with huge compensation and high bonus pay outs have performed The results indicate that executive remuneration has a significant impact on company performance. The data supports the hypothesis that that the higher the remuneration pay the lower the company performs Introduction This essay analyses the affect executive remuneration has on company performance from a corporate governance perspective, it illustrates the corporate failures faced by the Royal Bank of Scotland (RBS) at the time of the financial crisis. The main principles in the UK Corporate Governance Code and the agency problems in relation to executive remuneration will be considered. It will then, examine the role of the remuneration committees in determining directors remuneration by reference of the Greenbury Report and the UK Corporate Governance Code, as well as the recommended levels of remuneration for executive directors. Finally, it will analyse
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