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10 Cards in this Set
- Front
- Back
Performance incentives |
Pay dependent on profit level Shares incentives Shareholders’ intervention |
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Performance disincentive |
Threat of being fired Takeover threat |
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Non-executive director |
-To give a meaningful contribution to the board by providing objective criticism -Brings an independent judgment in terms of strategy, performance, and resources |
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Non-executive directors |
-Strategy -Establishing networks -Monitoring performance -Ensures that true, fair, and real financial performance is performed |
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Chief financial officer (cfo) |
-implements internal controls -Supervises major impact projects -Develops relations with financing sources -Advisor to management -Drives major strategic issues -Risk managers |
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Audit Comittee |
-oversight function -ultimately responsible for the company’s financial reporting processes and the quality of its financial reporting. |
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External auditor |
-Casts away doubts on the information given by the management which are also generated under its direct control. |
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is someone who protects and takes care of the needs of others. |
Steward |
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Sole Objective of Stewardship Theory |
to create and maintain a successful organization so the shareholders prosper. |
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This examines the needs of not only shareholders but of every fraction associated with the organization. |
Stakeholder Theory in Governance |