In conclusion, when designing the executive remuneration plan, several factors should be considered. So as to drive the motivation level of the executive members, the company should not only have fixed element to the remuneration plan, but variable as well. In order to determine what the variable elements should be, company should look at the type of industry they are operating in, the culture and tradition of the country they are operating in.
The Watts and Zimmerman’s Positive Accounting Theory focuses on the relations between various individuals and how accounting is used to support it. All individuals’ actions are motivated by self-interest to increase their wealth, and as a result do not have a sense of loyalty or morality.
Remuneration …show more content…
Germany has high individualism and is a masculine country. This indicate that Germans are highly motivated by success and achievements and would have more flexibility towards the accounting standards and thus likely to use methods that would show a better performance of the company. This further supports the variable element of the remuneration plan as individualist environment drives self-confidence where it could create greater sense of personal responsibility towards outcome of the performance. Being a masculine society, it could also drive the executive member to be more aggressive in taking on projects or making decisions. SA could also give a special bonus in the event where the members took on projects that are more challenging and yet could attain good …show more content…
Executive members are also granted payments upon the age of sixty-three and after they left the company, or in the event of disability. In the event of early termination of the job as Executive Board, the payment shall not exceed the amount of two annual salaries or the remaining term of employment contract as a member.
The purpose of this report is to describe the executive remuneration plan of Continental AG (“Continental”). On top of that, the report would include a recommended executive remuneration plan for the subsidiary of Sahrawi Autos Ltd (“SA”). The recommended executive remuneration plan will be developed accordingly to the relevant accounting theories and, the cultural and financial reporting in
The Watts and Zimmerman’s Positive Accounting Theory focuses on the relations between various individuals and how accounting is used to support it. All individuals’ actions are motivated by self-interest to increase their wealth, and as a result do not have a sense of loyalty or morality.
Remuneration …show more content…
Germany has high individualism and is a masculine country. This indicate that Germans are highly motivated by success and achievements and would have more flexibility towards the accounting standards and thus likely to use methods that would show a better performance of the company. This further supports the variable element of the remuneration plan as individualist environment drives self-confidence where it could create greater sense of personal responsibility towards outcome of the performance. Being a masculine society, it could also drive the executive member to be more aggressive in taking on projects or making decisions. SA could also give a special bonus in the event where the members took on projects that are more challenging and yet could attain good …show more content…
Executive members are also granted payments upon the age of sixty-three and after they left the company, or in the event of disability. In the event of early termination of the job as Executive Board, the payment shall not exceed the amount of two annual salaries or the remaining term of employment contract as a member.
The purpose of this report is to describe the executive remuneration plan of Continental AG (“Continental”). On top of that, the report would include a recommended executive remuneration plan for the subsidiary of Sahrawi Autos Ltd (“SA”). The recommended executive remuneration plan will be developed accordingly to the relevant accounting theories and, the cultural and financial reporting in