The Management Should Consider Revising Its Remuneration Policy

713 Words Nov 24th, 2015 3 Pages
Implementations Citic Pacific should acknowledge the need to change its internal controls, primarily the delegation of authorities among the executives. There should always be a check and balance in the performance of duties, and a separation of authorities between the maker and an approver to keep an efficient control. Furthermore, there must be a change with the way the firm pays bonuses. The management should consider revising its remuneration policy because the performance-based of giving incentives is prone to manipulation and does not comply with the goal of achieving long-term objectives.
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 selective data for public information.
In addition, the firm should also identify all the participants in the transactions including the individuals who represented on behalf of the company. In case of any unauthorized and fraudulent transactions or activities, the management should make the responsible parties accountable for…

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