Essay: The best argument to support this idea of the shareholders

29 Oct

Essay: The best argument to support this idea of the shareholders

The best argument to support this idea of the shareholders is that a company that reports the remuneration of its executives is seen to be competitive and efficient. Doing away with such, a requirement will mean that shareholders will feel that the financial books are not prepared with the right figures. It is possible that the bookkeeper increases some figures and refers to them as general expenses only to benefit himself. This will mean that the shareholders will receive understated financial records reporting more expenses and thus less revenue (Brown, 2005).

Since the names of the executives are not recorded in respect to the remuneration expense, it follows that some level of privacy on the part of the executives is exercised. It takes ones time to calculate the remuneration paid to each of the executives using the figures shown in the accounts. This proves that there will be some privacy since not all shareholders will be interested in carrying out such computations.

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