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requsting ur quick reply!!!

Forums › ACCA Forums › General ACCA Forums › requsting ur quick reply!!!

  • This topic has 0 replies, 1 voice, and was last updated 9 years ago by Avataramawesome2.
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  • August 15, 2016 at 6:40 am #333199
    Avataramawesome2
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    • Topics: 85
    • Replies: 24
    • ☆☆

    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?

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