Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
7 Cards in this Set
- Front
- Back
- 3rd side (hint)
|
What is executive remuneration?
|
Substancial benefits to ensure to ATTRACT, RETAIN and MOTIVATE executive directors
|
ARM
|
|
|
Name different types of remuneration:
|
Salery
Shares Share Options Performance bonus Pensions Termination bonuses Benefits in Kind |
SSS
PPT BIK |
|
|
What are share based payments?
|
Stock given as an incentive
|
|
|
|
What are the benefits of share based payments
|
Motivation
Cash Flow Executive Retention Tax benefits Advantage for less risky (older companies) |
With an optional one
|
|
|
What ar the disadvantages of Share Based Payments
|
Share price not always in executives CONTROL
Does not DIFFERENTATE between different director's performances FALL in price can demotivate May not ALIGN interests of shareholders FOCUS on share price Encourages MANIPULATION |
CDF
AFM |
|
|
What are the 3 important share times and what do they mean?
|
GRANT date - when agreed
VESTING date - when conditions met EXERCISE - shares bought |
|
|
|
What are the accounting rules of share based payments?
|
EXPENSE
Period RECEIVED Fair value |
|
