Recommendations
As a publicly listed company, Citic Pacific has an obligation to inform the public about all of the material information involving the company operation. “ALL” means disclosing every event that might or might not affect the financial condition of the company, and what might or might not result to any changes in the overall structure of the organization. Thus, it is highly recommended that the management should present to the public the relevant information including all contracts and business agreements committed by the firm, and not only the …show more content…
Ownership concentration means the overall ownership structure of the people contributed to the capitalization of the firm, while executive compensation includes salary, incentives, and bonuses given to the managers, and the Board of Directors represents individuals who monitors and controls the overall decision process of the firm. The internal mechanisms control and monitors the activities of the organization and take corrective actions when the company off tracks it strategic goals (Davoren, 2015). In case of Citic Pacific, internal mechanisms proved insufficient. They were more focused on making profits and when they didn’t, they failed to report their actions in a timely