“Corporate Governance”

Analyze the pros and cons of a corporation having outside board of directors. Next, determine the proportion (i.e., minority, majority, or equal representation) that the outside board members should represent in the board. Justify your response.

Go to Bloomberg’s Website, and read the article titled, “CEO Pay 1,795-to-1 Multiple of Wages Skirts U.S. Law,” located in Week 10 of the course shell. You may view the original article at http://www.bloomberg.com/news/2013-04-30/ceo-pay-1-795-to-1-multiple-of-workers-skirts-law-as-sec-delays.html#disqus_thread. Considering the Board of Directors (BoD) as an intermediary between the managers and the owners, determine whether or not the BoD is acting ethically and legally in controlling CEO compensation. Next, suggest one (1) method for determining a reasonable compensation rate for the CEO of a company. Suggest two (2) changes that need to happen in corporate governance in order to control excessive CEO compensation.

Corporate Governance

Consider a publicly listed company whose business performance has been criticised publicly
and, using its annual report, reference documents about the company (e.g. analysts’ reports,
in-depth interviews and articles, documents on company’s website) and write a report about
its governance protocols and practices. (This could include independence of directors, length
of tenure of directors, other responsibilities of directors, etc.).

The report should include:
? A brief description of the organisation and its background/industry. This description
should be a short section only.

? An outline of the bases or criteria for the review of the organisation’s governance. For
example, mention which standards or guiding principles are relevant for the review,
discuss their importance and why it is appropriate for you to use them.

? A critical review of the organisation’s governance applying the relevant concepts,
principles, standards or other tools and techniques learnt during this subject, in
accordance with your discussion above.

? A list of recommendations for suggested improvement based on your review. The
recommendations should only be a short section in the overall report.
Important assignment instructions

? The required word length for this assignment is 2500 words (plus or minus 10%).

? In terms of structure, presentation and style you are normally required to use:

– AIB standard report format; and
– AIB preferred Microsoft Word settings; and
– Harvard style referencing (which includes in-text citations plus a reference list).
These requirements are detailed in the AIB Style Guide.

? Reference lists for AIB assignments / projects normally contain the following number
of relevant references from different sources: 6-12 (for MBA assignments).

? All references must be from credible sources such as books, industry related journals,
magazines, company documents and recent academic articles.

? Your grade will be adversely affected if your assignment contains no/poor citations
and/or reference list and also if your assignment word length is beyond the allowed
tolerance level (see Assessment Policy available on AIB website).

Corporate Governance

Consider a publicly listed company whose business performance has been criticised publicly
and, using its annual report, reference documents about the company (e.g. analysts’ reports,
in-depth interviews and articles, documents on company’s website) and write a report about
its governance protocols and practices. (This could include independence of directors, length
of tenure of directors, other responsibilities of directors, etc.).

The report should include:
? A brief description of the organisation and its background/industry. This description
should be a short section only.

? An outline of the bases or criteria for the review of the organisation’s governance. For
example, mention which standards or guiding principles are relevant for the review,
discuss their importance and why it is appropriate for you to use them.

? A critical review of the organisation’s governance applying the relevant concepts,
principles, standards or other tools and techniques learnt during this subject, in
accordance with your discussion above.

? A list of recommendations for suggested improvement based on your review. The
recommendations should only be a short section in the overall report.
Important assignment instructions

? The required word length for this assignment is 2500 words (plus or minus 10%).

? In terms of structure, presentation and style you are normally required to use:

– AIB standard report format; and
– AIB preferred Microsoft Word settings; and
– Harvard style referencing (which includes in-text citations plus a reference list).
These requirements are detailed in the AIB Style Guide.

? Reference lists for AIB assignments / projects normally contain the following number
of relevant references from different sources: 6-12 (for MBA assignments).

? All references must be from credible sources such as books, industry related journals,
magazines, company documents and recent academic articles.

? Your grade will be adversely affected if your assignment contains no/poor citations
and/or reference list and also if your assignment word length is beyond the allowed
tolerance level (see Assessment Policy available on AIB website).