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Mini Case: Your organization is undergoing a change

Mini Case: Your organization is undergoing a change in top leadership. You are on the committee that is responsible for determining the compensation (salary plus incentives) for the new CEO. What should his/her bonus be tied to? How will you keep him/her from trying to maximize short-term performance at the expense of both long-term viability and stakeholder wellbeing? How would you alter your response if the firm was a not-for-profit organization versus a profit seeking corporation?

Is it good business for firms to donate money to charity? Some say that this is the stockholders' money and they should get it and they donate to the charity of their choosing. Explain how you feel about this subject.

As a financial manager you may not be involved in the actual structuring of a loan. However, it may be your call as to when your company seeks funding and the type of funding sought. What factors must you consider when making this decision?

(Thank you for your help and time, my organization is a motel where I am a desk clerk. The discussion posting can be around 2 good paragraphs, thank you again)

Solution Summary

What should his/her bonus be tied to?
CEO's are paid very well for their time and effort. Not only do they earn million dollar salaries and bonuses; they also receive stock-based pay. This means that the executive is also an owner of the corporation he or she works for.