INT103 Human Development Across The Lifespan

Reflective essay

Within annual reports, companies frequently disclose information about how their managers are rewarded in terms of components of their management compensation package. For example, within IAS 25 there is a requirement for information about the components of rewards paid to key management personnel be disclosed within the company's annual report.

Required:

Select two large companies listed on the securities exchange and identify the components of their management remuneration plans. Explain how the respective components would be expected to align the interests of the managers with those of the owners and to minimise the contracting costs of the organisation.