Thursday, February 13, 2020

Why executive compensation is out of control Essay

Why executive compensation is out of control - Essay Example Many investors in the stock market all over the world believe that executive pay is running out of control. There is worrying trend especially in the United States where the annual salary of an average worker is the amount of money an executive receives in a day. Critics believe that executive bosses are not worth the amount of compensation they receive. Despite falling stock shares in the market, executives still receive large amounts of compensation. Stock market investors believe this should not be happening since their performance does not correspond to earnings. At a moment where recession and unemployment is high in many countries, it does not make economic sense to have executive bosses receive such a large amount of compensation. The excess pay awarded to them should instead be invested in the public sector and this consequently shows how executive bosses have little concern about their countries and the citizens. Economists believe that in order to clear the economic instability being experienced in the world currently, it is important that the pay of executives be tied to performance (Bebchuck, 2010). Most executive bosses control their board of directors hence they still manage to earn exaggerated compensation. The board of directors should however be able to control the compensation got by this executives and their compensation should be tied to performance instead of the power an executive has in the board. This shows how corporate governance is continuously being under rated with a show of little economic sense when just a few people are left to joke around with investor’s interests. The fact that executive compensation is determined by market demand, most executives are continuously receiving an exaggerated compensation in comparison to an average worker. Critics believe that the market forces such as demand and supply should not entirely determine their compensation and it should however

Saturday, February 1, 2020

Report on Panama Canal Expansion Project Essay Example | Topics and Well Written Essays - 2000 words

Report on Panama Canal Expansion Project - Essay Example The project has been rocked with a strike which could threaten the completion of work as scheduled. Contents Abstract 1 Contents 2 Introduction 3 Background 4 Strengths and weakness of the project 6 Findings 7 a.Finances 7 b.Environmental Impact 8 c.Stakeholders 9 d.Governance and oversight 9 e.Risk mitigation 10 f.High level risks and insurances 10 g.International Governance 11 h.Procurement Policies 12 i.Strategic Human Resource Management and HR concerns 12 j.Performance Assessment of the Panama Expansion Project 14 k.Earned Value management 15 Professional Reflective statement 16 Conclusion 16 Recommendations 18 Bibliography 19 Appendices 22 Introduction Many infrastructural mega projects are prone to suffer from cost overruns, delays, poor performance or inability to give customer satisfaction. Interaction of several factors can cause complexities which can either promote success or inhibit it depending on how they are approached. It is crucial for project managers to thus criti cally analyze a mega project before undertaking it. One such project is the Panama Canal expansion project. Panama Canal is one of the busiest waterways globally. Opened in 1914, Panama Canal is a critical prop of international trade (Gagne, 2011, p. 1267). Nevertheless, the growth of international shipping in the last century and in the present times continues to be hampered by the Canal’s capacity (Gagne, 2011, p. 1267). This necessitated Panama Canal Authority to embark on an ambitious project of expanding the canal. Currently, the canal accommodates vessels of not more than 965 feet (294.1m) in length, 39.5 feet in depth, and a beam width of 106 feet (Sayre, 2010, p. 16). Vessels that can navigate in this canal are known as Panamax and have the ability of can carrying 4000-4500 Twenty Four Equivalent Units. Vessels larger than Panamax are able to navigate in other trade canals which and therefore Panama Canal Expansion project seeks to position the harbor as an internatio nal trade channel able to attract bigger ships and therefore enhance international trade and increase profitability. The expanded canal will be able to handle vessels of up to 1200feet in length, 160 feet beam and a draft of 49 feet (Sayre, 2010, p. 16). After completion, the canal will help reduce waiting times and bring down the costs of shipping significantly (Berman, 2006). According to the projections by Panama Canal Authority, canal expansion project is going to result to between 7 to 17 percent savings to shippers due to increased capacity (Panama Canal Authority Announces Expansion Plans, 2006, p. 12). The decision to expand the canal took into consideration various factors that could be affected by its expansion both locally and internationally. This report highlights some of the areas that have been considered since the decision to embark on Panama Canal Expansion Program was made. It will also evaluate the issues of international governance, change leadership, performance and procurement management and human resources issues surrounding Panama Canal expansion. Background The genesis of a canal running across the Isthmus of Panama goes back to 1534. At this time, the king of Spain, Charles V ordered a survey to be carried out in search for a route passing through the Americas that ships traveling Between Spain and Peru could use (Caso & Welsh, 1978, pp.72 . This discovery of gold in California was met with interest to cross between the Atlantic and Pacific