Corporate Governance

INTRODUCTION: WHAT IS CORPORATE GOVERNANCE AND ITS RELATION TO EXECUTIVE COMPENTATION

somatic Governance is best known as business ethics. integrated governance is the
relationship between a company and its stakeholders. Stakeholders entangle their shareholders,
directors, and management of a company, as defined by the unified charter, bylaws, and
formal polices & rule of law (2007). Corporate governance is the track directors and auditors
exercise their responsibilities in the interest of company shareholders and stakeholders. Typical
corporeal governance measures include appointing non- administrator directors, placing constraints
on management power and willpower concentration, as well as ensuring proper disclosure of
monetary information and decision maker stipend (Paul, 2010). Corporate governance is
considered to be a secondary factor of a companys performance rather than a primary factor
much(prenominal) as its financial position and operation strategy. Successful executing of good
incorporated governance increases a companys value and its bottom line.




Due to a series of high-profile scandalization involving abuse of corporate power, greed, and in

some case practiced down right criminal activity by corporate officers, the relationship between

corporate governance and executive director requital has become a hot button issues. The size of

executive compensation packages has been an issue in the USA for much of the prehistorical century but

it is only recently that the structure of compensation packages has become the subject of

increased scrutiny as a result of the apparent relationships between failures in governance and

executive compensation (e.g., Fannie Mae, Freddie Mac and Parmalat) (Sapp, 2008). Central to

all of these views, however, is the realisation that executive compensation packages are designed

to align the incentives of executives and a staunchs stakeholders (Sapp, 2008). When a companys

share prices bellies up due to...If you wish to get a full essay, order it on our website: Ordercustompaper.com



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