approximately 100 words Greenworks Ltd wants to focus on ‘people, profits, planet’. The board of directors...

approximately 100 words

Greenworks Ltd wants to focus on ‘people, profits, planet’. The board of directors has proposed linking top managers’ pay to broad measures of environmental sustainability, and worker and customer satisfaction. The board proposes that bonuses for management will be linked to targets such as the reduction of greenhouse gas emissions and energy use, the introduction of new environmentally friendly products and improvements in workforce morale.

Required

Advise the board of the two (2) potential positive implications and two (2) potential negative implications of the proposed remuneration policy.

Expert Solution

The Advantages Of This Remuneration Policy

A)Increased Effeciency: As the top management pay is directly linked with the enviornment sustainability. The top management will work more effeciently so that they get more bonus by working effeciently.

B)Pay Tied to Work:If this remuneration policy is applied then every employees work will determine the pay he will get. the work done will decide his pay. So, the more the employees will work for attaining the objectives of the company the more they will be paid.

Disadvantages of this remuneration Policy:

A)Unpredictable Expenses: The employees to earn more pay may use more resources or extensive use of resources which will generate more unpredictable expenses for the company. As the company is not predicting how much resources the employees going to use and for gaining more bonus the employees may use more than required resources means wastage of resources.

B)Increase In Price of Product: To produce more enviornment friendly products the company have to achieve more effecient production techniques and may require new technologies and reseach and developement plan which will add to the cost of production and increase the expenses of the company. Thus, it will increase the price of the product.

ekkarill92 answered 2 years ago

In anticipation of the upcoming quarterly disclosure of profits, you prepare your Board of Directors for...

In anticipation of the upcoming quarterly disclosure of profits, you prepare your Board of Directors for the challenge that cost-push inflation having on profits. All America Grocery Inc - We serve communities in the middle of the income market providing low prices for all basic grocery needs. Our modest income consumers expect goods deals on good quality foods. The Covid-19 pandemic has put upward pressure on the price of everything we sell. We have also experience in rising costs in every...

george green was apppointed by the board of directors of nature pty ltd to be the...

george green was apppointed by the board of directors of nature pty ltd to be the company's managing director. nature now arranges camping holiday. green arranged a $15000 supply contract on the company's behalf, with canvas tenis ltd. however nature now's constitution contains the following provision: clause 1 the managing diretor may take contracts upto $10000 but above that amount the board approval is required. greeen had not obtained the boards approval for this contract, later the board refused to...

approximately 100 words Ultron Ltd has been sued by the municipal council for polluting the local...

approximately 100 words Ultron Ltd has been sued by the municipal council for polluting the local river. It is very likely that Ultron Ltd will lose the case. However, the lawyers have advised Ultron Ltd that at this time it would not be possible to estimate what the total damages would be. Required: Should Ultron Ltd recognize a liability for this event? Justify your answer by reference to the definitions and recognition criteria in the Conceptual Framework. Should Ultron Ltd...

Answer length - approximately 100 words Crystal Ltd has spent $375,000 this year on a project...

Answer length - approximately 100 words Crystal Ltd has spent $375,000 this year on a project to develop a new range of wrinkle-reducing skincare products. At this current stage of development, it is too early for Crystal Ltd’s management to be able to predict whether this project will prove to be profitable? Required: Explain whether Crystal Cosmetics should recognize this expenditure as an asset at the end of the current financial year. Justify your answer by reference to the asset...

1. What is the Board of Directors? How do these people get their jobs on the...

1. What is the Board of Directors? How do these people get their jobs on the Board? What do they do for the corporation? 2. Explain why a corporation would declare cash dividends and its affect on the stock market. 3. Explain why a corporation would declare property dividends. Give one positive and negative result of property dividends. 4. Explain two reasons for a stock split. Research the cost of one share of Google common stock. Why would Google Split?

The board of directors of Western Ltd declared a cash dividend of $1.50 per share on...

The board of directors of Western Ltd declared a cash dividend of $1.50 per share on 42 000 shares of ordinary shares on 15 July, 2014. The dividend is to be paid on 15 August, 2014, to shareholders of record on 31 July, 2014. The effects of the journal entry to record the payment of the dividend on 15 August, 2014, are to: increase shareholders’ equity and increase liabilities. increase shareholders’ equity and decrease assets. decrease liabilities and decrease assets....

The Board of Directors of ABC Co Ltd has assigned you the task of analysing the...

The Board of Directors of ABC Co Ltd has assigned you the task of analysing the Discounted Cash Flow (DCF) technique for appraising large investment decisions. Write a report to them giving your observations.

QUESTION 18 At a Board meeting of Kindler Pty Ltd, the directors resolved to hold another...

QUESTION 18 At a Board meeting of Kindler Pty Ltd, the directors resolved to hold another Board meeting in a week's time to remove Tom as a director. Is this resolution procedurally flawed, if so, what is the primary reason? A. Yes - S. 203C makes it mandatory for directors to be removed by majority vote of members in company meeting, not directors in a directors meeting. B. Yes - S. 203D(2) states that at least 2 months' notice is...

The board of directors of KLM Pte Ltd (“KLM”) has decided on 18 December 20X1 to...

The board of directors of KLM Pte Ltd (“KLM”) has decided on 18 December 20X1 to close its factory in Malaysia and move it to Vietnam. The decision was based on a detailed formal plan of re-structuring as required by FRS 37 “Provisions, Contingent Liabilities and Contingent Assets”. The decision was conveyed to the management personnel at the headquarters in Germany. The cost of restructuring the operation in Malaysia as per the plan was $700,000. Illustrate and explain how KLM...

If a company’s board of directors wants management to maximize shareholder wealth, should the CEO’s compensation...

If a company’s board of directors wants management to maximize shareholder wealth, should the CEO’s compensation be set as a fixed dollar amount, or should the compensation depend on how well the firm performs (that is, the company's performance)? If it is to be based on performance, how should performance be measured? Would it be easier to measure performance by the growth rate in reported profits or the growth rate in the stock’s intrinsic value? Which would be the better...

Question