Clarity and transparency in project, Financial Accounting

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Clarity and transparency

The terms of the payment package must be clear and transparent so that directors and shareholders are in no doubt as to when rewards have been earned or the basis on which rewards have been calculated.

Appropriate performance measure

The managerial performance measure selected for employ in the remuneration package should support the achievement of shareholder wealth maximisation. It is consequently likely that the performance measure could be linked to share price changes.


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