2022留学生作业澳洲Essay Case report
1. Case report on executive compensation (50%) (1000 words limit)a) (i) What are the main reasons for linking managerial pay to firm performance? (ii)Describe and explain the maintheoretical principles for executive compensation.b) Consider a publicly listed company in the UK or in the US of your own choice. Suppose that the board has askedyou to write a short report on the design of a new compensation package to the top executive. Your reportshould have the following structure:- Introduction: less than 1 page description of company such as market situation, product line, historical backgroundincluding stock price, financial situation, description of current top executive such as his background and length oftenure.- A discussion/analysis of compensation package. The analysis should conclude in specific recommendations withrespect to: level of total pay, strength of incentives, options (what type? which exercise price?), bonuses (madeconditional on what?), stocks, subjective performance indicators that might be included in pay package (indicatorsthat could be difficult to quantify), benchmarking/indexing vis-à-vis other companies UkassignmentThe analysis can assume that the CEO currently is on a salary contract (i.e., I do not want a discussion of the existingpay package). The conclusion should, however, briefly describe the existing pay package and discuss how yourrecommendations differ from the actual pay package in place.You are encouraged to relate the analysis to strategic features of the company such as product market conditions(e.g., are there close competitors? Who? How will the pay package relate?) and financial conditions (e.g., could therebe a free cash flow problem?). To the extent possible, you are also encouraged to relate your analysis to the outsideoptions for the CEO (his labor market opportunities). Good luck!Note: You are encouraged to work in teams consisting of 2 persons when collecting the data for part 1 (teamsconsisting of more than 2 persons will receive a lower grade).
