Say-On-Frank Act Essay

Like all companies the main one of the main objectives is to reach their goal and objective while also keeping cost down. In relation to option one to hire temporary employee does not necessarily keep cost down. Although hiring of temporary staff will help to reduce the workload of technically competent employees it will cost to hire a sent number of temporary staff to reduce staff workloads. In relationship to cost this option will not fair well using these criteria. The other two options are more capable of obtaining it objective and goal while keeping cost down.

On March 24, 1765, The British Parliament passed the Quartering Act which decided the dedication of the American leaders to outfit British troops with safe house and acquisitions. Despite the fact that there was some yearning to secure their far-away subjects, the expense of doing as such was measuring intensely on the saddled to-handle British open. Somebody needed to pay to bring home the veterans from the French-Indian War and furnish them with benefits. Authorities in Britain could see no motivation behind why that the American homesteaders ought not to tolerate the brunt of the expense. The British likewise settled a leading group of traditions chiefs, whose intention was to stop frontier sneaking and the uncontrolled debasement of neighborhood authorities who were frequently complicit in such unlawful exchange. The board was entirely successful, especially in Boston, its seat. As the blacklist spread, badgering of

I agree with the advisory votes provision of the Dodd-Frank Act, because it serves as a valuable means of gauging the pulse of the collective shareholders’ interests. Since executive compensation is an important tool intended to align the interests of both the corporation and the shareholders, a system of assessing the shareholders’ interests is necessary – without it, the shareholders’ interests are in many ways left to speculation. Given the varied geographical locations of the shareholders and the regulations governing their ability to interact with one another, the advisory votes mandate affords the shareholders a collective voice and provides the board of directors with valuable feedback.

The American Revolution was not the consequence of any single event or any single legislation. It was a result of some combined factors playing against the wellbeing of the colonists and imposed upon the colonists by the British government. But a series of laws related to taxation which were passed between 1763 and 1775 can be considered as one of the most important factors which instigated the American Revolution. It was in respect of responding to such legislations that debate began on what should be the appropriate nature of such response. For opined that the response to such impractical and overburdening legislations must be vent through proper ways of discussions and deliberations while some others

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 gave the right to the shareholders to be able to approve the executive compensation for a company, in this case the Kroger Corporation. However, this is only on an advisory basis which is nonbinding. Meaning, if Kroger so chooses, it may not follow the executive compensation decisions made by the shareholders. Ultimately, the power to set the executive compensation is given to the Compensation Committee. Kroger wishes to retain the best management possible, and it does so through competitive pay. Kroger believes that a significant amount of the pay should be based on performance and the proportion of responsibility held by the executive. They also believe compensation should

When approving compensation for directors, officers and employees, contractors, and any other compensation contract or arrangement, in addition to complying with the conflict of interest requirements and policies contained in the preceding and following sections of this article as well as the preceding paragraphs of this section of this article, the board or a duly constituted compensation committee of the board shall also comply with the following additional requirements and procedures:

The passing of the Stamp Act by Parliament in 1765 caused a rush of angry protests by the colonists in British America that perhaps "aroused and unified Americans as no previous political event ever had." It levied a tax on legal documents, almanacs, newspapers, and nearly every other form of paper used in the colonies. Adding to this hardship was the need for the tax to be paid in British sterling, not in colonial paper money. Although this duty had been in effect in England for over half a century and was already in effect in several colonies in the 1750's, it called into question the authority of Parliament over the overseas colonies that had no representation therein.

In 2010, president Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act, which mandated that all public firms in the US hold advisory votes on Say On Pay(SOP) at first annual shareholders meetings held in 2011. This act did not only made SOP a compulsory item also put the hot-button trigger of economic reform. SOP is a non-binding proposal included in a company’s proxy materials that calls for an annual shareholder advisory vote on a company’s executive compensation program (Krus, Morgan, & Ginsberg, 2010).

The goals of the new contingent staffing model at were: to recruit high professional candidates that passed the special uniform test; and to maintain the flexibility of the staff; that means that the number and quality of the staff must answer the present needs of the company in the staff; to develop an infrastructure to manage contingent workers and control costs of their employment in the company (Beaulieu, 2000). You have to make sure your employees are providing strategic value. Strategic value refers to employee potential to improve company effectiveness and efficiency (Noe, 2013).

“From a tax regulation perspective, the Internal Revenue Services (IRS) recognizes two groups of employees who play a major role in a company’s policy decisions: highly compensated employees and key employees” (Martocchio, 2014, pg. 294). Highly compensated employees refer to the nondiscrimination rules in the employer-sponsored health insurance benefits. According to Investopedia (2010), a highly compensated employee is an employee who is a five percent owner of the company or an employee who has received more than 110,000 in compensations. However, a highly compensated employee can also be defined as an employee whose pay is at the top twenty percent of the company. “When a company contributes to a defined-benefit or defined-contribution plan for its employees and those contributions are based on the employee’s compensation, the IRS wants the company to minimize the discrepancy between the retirement benefits received by highly compensated and lower compensated employees” (Investopedia, 2010, pg. 1). This is how the breakdown of compensation of allotted to highly compensated employees. On

Not long ago shareholders were given the right to vote under remuneration reports, after the outburst of executive pay and bonuses in USA and across Europe. This system, adopted in the UK in 2003, is called ‘say on pay’ (SOP); it is mostly used to monitor future executive pay levels when votes go beyond 10%. (Gregory-Smith et al., 2014) Some view this SOP tool, allowing shareholders to express their concerns, as a way of controlling executive directors from having an opportunistic behaviour (Dion, 2016) or from excessive risk-taking manners. (Thomas et al., 2014, p.219-235) In USA, SOP is seen as a tool for monitoring senior management, and for developing and improving

Therefore, from an employer’s perspective there are several benefits to this conception. One asset is that management will receive two skill sets and two employees who possess a variety of experience. Subsequently, another benediction is that an organization will gain employees who are energized and are more able to concentrate on their work. In addition, there is uninterrupted workflow coverage for the position, in the case an employee decides to take a vacation. Lastly, the firm saves money on retention and recruitment costs due to a curtailed employee turnover ratio (Katepoo,

Therefore in 2012 the government introduced the Enterprise and Regulatory Reform Act in order to subject shareholders a binding vote on executive pay. With this power, shareholders can hold companies to account and hence companies need to get shareholders’ approval before making payments to executives. Therefore, shareholders will have a clear mind on director’s remuneration policy which will set out how the company proposes to pay director in order to ensure the relationship between director’s pay and company performance. It requires more than 50% of shareholders to pass the policy, otherwise it will go back to last approved policy. In order to administrate the company effectively, a balance is needed to be taken between investor’s expectation and executive’s incentive to work. Hence, this essay will discuss whether shareholders should have a say on Executive Compensation in the UK context. The following will discuss several reasons that shareholders should have a say on executive pay.

Executive compensation is a form of financial compensation that is determined by the compensation committee. The compensation committee sets the package so it correlates with factors that have an effect on the company. According to an economic theory known as the “Optimal Contracting Theory.”, top executives and shareholders negotiate through the board of directors to maximize their respective interests (Managerial). A principal/agent problem arises because shareholders need to get the

As the case study eluded to there are many advantages to hiring temps but there are also some complications that come with it as well. As the study mentioned, one of the advantages of the situation is the amount you could save in wages and benefits. The average wages for a temp were $14.59 and the average benefits were $18.90, compared to permanent employees with an average per hour cost of $24.19 for wages and $10.95 for benefits. (Denisi, 2017) Although, these costs are a major advantage in the long run, I think it’s worth mentioning that there are still costs associated with this policy. For one, many companies go through a temp agency to avoid having to sort through all the resumes. According to Petersen (2017), many agencies charge a percentage of the hourly wage paid to the employee. Also sometimes they will charge to run background checks and other costs associated with the pre-hiring process. Its recommended to do research and find a quality temp agency to reduce costs. Also, a journal done by Judy GreenWald (2017), had law experts explain that the use of temp workers invite exposure, especially if not done right. Enzo Der Boghossian, who is an associate with law firm of Proskauer Rose L.L.P., strongly urges that an elaborate agreement should be written up to protect the business from liability. For example, a doctrine should be written up stating that the employees are still legally employees of the Temp agency. But according to some court cases there are still