• Use technology and information resources to research issues in advanced financial management.
Introduction: • At the risk of repeating ourselves, let’s let Mr. Charlie Munger, co-chairman of Berkshire Hathaway, say his piece on the power of financial incentives once more: “Never, ever think about something else when you should be thinking about the power of incentives.” Of course, we agree, and we want you to learn how to evaluate financial incentives that you’ll discover in the corporate world. We also want you to be able to assess relatively strong and weak corporate governance systems. That’s the crux of this final assignment.
• First, what we’d like you to do is to identify a public company (preferably one that you’re familiar with from prior assignments). Then, we’d like you to examine and analyze its governance principles, structures, and practices.
• We firmly believe that the effective financial decision-maker will understand the power that governance and strong systems have over financial performance, and thus it’s important to train ourselves to be acutely aware of these issues.
Here’s how we recommend approaching the assignment: o Head to edgar.sec.gov to access your company’s financial statements (or any site where you feel comfortable accesses your company’s financial statements, including the company’s own homepage).
For the Paper:
1. Thoroughly assess the committees the board members sit on. Are they appropriately staffed? 3. Assess the management. How long have they been with the company? What is their relative experience? Create a table formatt showing each board member, bio and committee they serve.
Show board layout in a graph.
2. Evaluate the board’s philosophy on executive compensation.
3. Discuss the metrics tied to the CEO’s inventive compensation. Are they sound metrics or not?
4. Determine if compensation is reasonable considering the company’s financial performance.
5. Determine if related-party transactions (sometimes called “transactions with related parties” exist, and if they do, whether they are reasonable.
Your assignment should adhere to these guidelines:
• Write in a logical, well-organized, conventional business style. Use Times New Roman font size 12 or similar, double-space, and leave ample white space per page.
• All references must follow APA
• On the first page or in a header, include the title of the assignment, the student’s name, the professor’s name, the course title, and the date.
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.Executive Summary
This report discusses schedule 14A information of Verizon Communications Inc. The report covers various aspects of Verizon’s governance structure. It begins with a review of the company’s members of the board of directors as highlighted in its proxy statement. The report highlights these members’ profiles and the skill sets that they bring to the board. This is followed by discussion of the board’s composition, committees of the board, the members who sit in the committees and whether or not these committees are appropriately staffed. The report also discusses the management of the company, evaluates the board’s philosophy on executive compensation and highlights the metrics the CEO’s inventive compensation is tied to. Lastly, the report discusses the reasonableness of Verizon’s executive compensation based on its financial performance. The report concludes that the company’s board of directors is adequately constituted and staffed, and that the company’s executive compensation is appropriate.
Verizon affirms its commitment to operating its business with the highest level of integrity, responsibility and accountability. With this regard, the company adopted a Code of Conduct applicable to all of its employees. Similarly, the members of Verizon’s board of directors are required to abide by the company’s Code of Conduct in addition to observing the specific ethical provisions of the Corporate Governance Guidelines. This section provides a brief overview of the members of Verizon’s board of directors, and highlight’s the qualities that each member brings to the board.
(1) SHELLYE L. ARCHAMBEAU (Age 51)