Say-on-Pay Essay Example | Topics and Well Written Essays - 500 words

Say-on-Pay - Essay Example And will it reduce the situations where pay for failure takes place?† Shareholders are the owners of any given firm or company and the interest of the operations of the firm is always at their heart. They would not wish to impact negatively on the firm’s performance at any time, as this is likely to translate into losses. Furthermore, this is not a good happening for shareholders as they are interested in the returns that their investments are likely to bring. A talk on the aspect of say-on-pay is much in place since it has become a daily activity among investors to lay check on their employees. Most companies are today acting to ensure that the performance of their employees is commensurate to the returns they expect. Moreover, excellent performance results from an employee; this depends on how they are handled in terms of their welfare, remuneration and work environment. This study in its efforts to respond to the statement laid down above has to undergo a series of testing procedures of the hypothesis. This will involve a study on the thesis; the study will take varied approaches and methods. Since the practice is still new, it means there are no adequate secondary data hence observations of the few companies, which have employed the practice, would aid us in making deductions about the raised questions. Strict rules have to be laid down against executive compensation; this is because without this the executive are capable of embezzling shareholders’ funds. The fact that executives normally take the advantage of the separation that exists between the ownership and the management makes this even worse. Therefore, such a study is important for the following reasons. One, the study will give us the clear relationship that exists between pay and performance. Moreover, strategies or required changes are recommended in the process. The study will also clear the air as to whether there is any significant change when shareholders conduct a voting system to