Company 1: Telstra
Telstra is known as Australia’s leading telecom and selective Information Services Company, who offer a full chain of communications services and competing in all telecommunications markets. In Australia we provide 15.8 million mobile services, 7.7 million fixed voice services and 2.8 million retail fixed broadband services. Their motto is that the more connected people are, the more opportunities they have. That's why we help create a brilliant connected future for everyone, everyday. Telstra’s future goal is to improve their customer advocacy, drive value from the core and building new growth businesses.
Remuneration highlights year 2013
Remuneration outcomes in FY13 were consistent with the company’s positive performance against financial and customer objectives. The governance of these outcomes remains a key focus of the Board and Remuneration committee and they regularly review their policies to ensure that remuneration outcome for their executives continue to be aligned with company performance.
There were a few changes in the remuneration framework and practices to further align the remuneration structure with the company's strategy and enhance remuneration governance. The two changes made were; firstly, the replacement of customer satisfaction measure with a Net Promoter Score (NPS) measure in 2013 Short term incentive plan during 2013, which is about improving customer service. Secondly, as mentioned in Telstra’s 2013 annual report pg. 47, “they sought and obtained shareholder approval for David Thodey’s (Chief Executive Office) 2013 Long term incentives allocation at our 2012 AGM as mentioned in their 2012 remuneration report”.
Types of Remuneration offered
The many types of remuneration offered t...
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...nt of this Act, the shareholders have the right to mention their concerns in regards to the executive pay and the board of directors have to take in consideration of their concerns.
Conclusion
In conclusion, both the companies National Australia Bank (NAB) and Telstra, operate very effectively in relation to their remuneration and share options. Both the companies offer a wide range of remuneration packages and provide the incentives that best match the needs of the employees. Telstra is very efficient in managing the interests between the managers and owners and minimising the contracting costs within the organisation. NAB measures the performance of the employees before they offer the bonus plans and incentives. In addition, the annual reports of both the companies disclose information about how their managers are rewarded in terms of their compensation plans.
One.Tel was an Australia based GSM service provider meaning it functioned mainly in the telecom sector and eventually grew to become Australia’s fourth largest telecom service provider before being shrouded in controversy which lead to its eventual downfall. Jodee Rich and other executive directors of the company faced accusations of not discharging their duties as directors effectively with respect to the duty of care they had towards the best interests of the company. This duty is mandated by Section 180 of the Corporations Act, 2001 as well as principles of common law.
Mujtaba, B. G., & Shuaib, S. (2010). An Equitable Total Rewards Approach to Pay for Performance Management. Journal of Management Policy and Practice vol. II (4), 111-121.
The company Steel Co, which has been established for around 30 years, has been in a steady decline during the current recession and although a Divisional Director has been employed by the owner the fortunes of the company have not improved. The staff is unhappy, unproductive and unimpressed by the Human Resource system that currently exists in the company. The pay structure that currently exists within the organisation has been much debated among employees who feel it is unsatisfactory. The Business Adviser will research Performance and Reward management tools in order to help the company develop a more suitable Performance and Reward system to use. A variety of sources will be used in order to evaluate the system and tools against other organisational frameworks. The pay structure within the company will also be looked at in order to identify any possible changes that could be made.
CEO compensation has been a heated debate for many years recently, and it can be argued that they are either overpaid or that there payment is justified by the amount of work they do and their performance. To answer the question about whether CEO compensation is justified it must be looked at by the utilitarian viewpoint where the good of many outweighs the good of one. It is true that many CEO’s are paid an exorbitant amount of money; however, their payment is justified by the amount of money that they bring back to the company and the shareholders. There are many factors that impact the pay that the CEO receives according to Shah et.al CEO compensation relies on more than just the performance of the CEO, there are a number of factors that play a rule in the compensation of the CEO including the fellow people who help govern the corporation (Board of Directors, Audit Committee), the size of the company, and the performance that the CEO accomplishes (2009). In this paper the focus will be on the performace aspect of the CEO.
What Do We Know About Merit Pay? Issue brief no. 20. N.p., n.d. Web. 15 May 2014.
The first incentive plan this author will discuss is “stock option”. “Stock Options” according to Dessler (2011) is normally the type incentive received by executive and sometime lower lever employees of a company. When employees have stock option it give them the right to procure a...
The following report will analyse Vodafone and their current position in the international market. This report will cover the competitive strategy of Vodafone and their influence of products and services in relation to the demand of the market.
Although at the same time functional goals encourage unnecessary risk-taking and increased the probability of unethical and possibly unlawful behavior (James, 2015). All the same, the purpose of executive compensation is an incentive for well-trained executives that make the most of the firm’s value (James, 2015). Further, the benefit that is put in place for the executive is structured to remove all conflicts of interest amongst the executive and shareholders (James, 2015). Although, some workers feel as though the executive compensation is unethical; but according to James (2015) it is given to the executives that are well trained, therefore, it is ethical from his point of view. Additionally, the compensation package assists as an enticement for executives to participate in potentially risky, maximizing activities, and profits that benefit the shareholders whenever ventures are successful (James,
When developing an effective RM procedure as part of organisational strategy many considerations must be addressed. O’Neil (1998) suggests the following key methods of linking pay to performance; ascerta...
Remuneration management is defined as the sum received for an employment or service delivered, this includes the money received on a monthly basis as well as benefits given as rewards (investopedia,para.1 ). Individualism need to be taken into account when implementing these remuneration structures or reward schemes, equal pay plays a role in balancing earnings among the diverse workforce (Shen, Chanda, D’Neetto and Monga,2009,p.241). The Woolworth’s Holdings uphold remuneration policies which have the purpose of making sure to attract and hold on to the best talent, that they are congruent with the strategies of the company and are the determinants of performance during the short and long phases. The policy considers the board members and the employees. This policy manages employees of the company by giving...
Employee compensation and reward systems have undergone a couple of paradigm shifts since inception. Reward systems were traditionally compensation based and focused on the individual or the position (Beam 1995). After a recession in the early 1980's, employers turned to performance based models in an attempt to save money while still rewarding top performers (Applebaum & Shapiro, 1992). Today, the most successful organizations are using a total reward model, a hybrid of the performance based model combined with strategic human resource management planning to create reward systems that both benefit the employee and help organizations realize their operational goals (Chen & Hsieh, 2006).
The organization is able to manage a high coverage of risks at relative low costs owing to the availability of highly skilled personnel in the company’s team of employees. This benefit also brings about another advantage of easing the financial burden of the organization (Johnson, 2016). Besides, effective employee benefit system offered by the organization could improve the general productivity. This benefit is attributed to the fact that employees tent to be more effective when they are given assurance of job security. In addition, workers become more productive when they and their families are given the desired security by the employer. The other benefit to the organization if it employs an effective compensation and benefits system entail benefits from premiums (Wayne, Shore, M., Bommer, & Tetrick, 2002). These premiums are typically tax deductibles as corporate expense. As such, a company that has an effective compensation and benefits system is likely save extra money for other
Formalized compensation goals serve as guidelines for managers to ensure that wage and benefit policies achieve their intended pur¬pose. The more common goals of compensation policy include to reward employees’ past performance, to remain competitive in the labor market, to maintain salary equity among employees, to motivate employees’ future performance, to maintain the budget, to attract new employees, and to reduce unnecessary turnover. It is important for the organ...
Mozes, HA 2002, ‘The FASB’s conceptual framework and political support: the lesson from employee stock options’, A Journal of Accounting, Finance and Business Studies, vol. 34, issue. 2, pp. 141-161, viewed 30 April 2014, Wiley Online Library Database, DOI 10/1111/1467-6281.00027
Organizations are working hard in today’s world of business, not only to remain competitive, but also to focus on stability and structure. Employees are the backbone of an organization. It is becoming more important to offer quality HRM programs to staff, in order to support the retention of trained and experienced staff. Employees have always been concerned with salary however, there is a new focus emerging that looks at compensation as a whole entity. Monetary wages are now just as important as other benefits such as paid time off, medical and dental offerings and retirement. This paper will discuss the importance of the total compensation program which includes many aspects, not just salary. Attention must be paid to equal pay, pay