Skip to content
ACCA exam results — Are you ready?Chat about it >>

ACCA Forums

General ACCArequsting ur quick reply!!!

BBroamawesome9y ago
Directors of banks will be asked to pay a fee to the bank for the privilege of being a director. This fee will be set by the remuneration committee of each bank. Directors will be paid a bonus based solely on appropriate profit and growth indicators. The more the bank succeeds, the higher will be the bonus. This proposal directly links performance of the bank to directors’ pay. I see this as a more realistic option than simply limiting salaries or bonuses by statute as proposed at the recent central bank governors’ conference.’ Q.Evaluate the proposal made by the governor of the central bank. M.scheme-Arguments in favour of proposal Response to stakeholder demands The proposal may be popular with shareholders and other significant stakeholders, such as government and the media. If the banks do not make profits, directors will be exposed to the risk of the loss of their fee. How are they exposed to the risk of loss of their fee when they have to pay the fee anyway? Isnt tht wht the propsl says?
Sign in to reply to this topic.