PracticeConsultingLetters – Getting what you pay for.

Letters - Getting what you pay for.

Really such mealy mouthed comments (Fat cat payouts come under fire from finance chiefs, page 1, 20 September)! Where past record indicated that on appointment a director is unlikely to produce the goods, then rightly significant termination ‘bonuses’ are inappropriate and the contract should not be made and be challenged by shareholders and institutions.

However, where there is a past record of success in business or profit growth, a company will never attract the ‘best’ man for the job without the inclusion of share options, termination payments etc. The contract is providing not merely for the provision of the incoming director’s expertise but also the ‘risk’ he is taking in moving from what is probably a ‘comfortable’ status quo.

C. J. Rogers, Chase Buckley.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer