JK Company-change in share price
Basing incentive on movement in share price again forces directors to look to improvement in the company as part of their compensation package. However, as the movement is based on the price at two specific points in time, then again there is the incentive to try and maximise the share price at these times to provide the highest possible level of remuneration. The only benefit of using the share price is that "inflating" the value in one year means that next year's bonus is likely to be reduced as it will be difficult to obtain a similar increase in price.
(d) CSR Report
-Reasons for:
Accountability:
Disclosure is the dominant philosophy of the modern system and the essential aspect of corporate accountability. Providing appropriate disclosure shows the company to be a good "corporate citizen".
