(ii) In terms of the disclosure, JK is attempting to show a better moral stance than TY. In other words, disclosure was in the public interest because customers of TY and JK were being overcharged. However, only a limited number of "members of society" would benefit from the disclosure-that is customers of TY and JK. If public interest disclosure means that all members of society must benefit,this argument cannot be used by JK. However, the argument that disclosure has benefited some members of society and has not harmed anyone else would mean disclosure was in the public
interest.
(c) Evaluation of remuneration
Spilt of remuneration-basic and performance related
Remuneration for directors is normally based on two elements;
· Firstly a basic annual salary to compensate directors for their normal work in
attending board meeting and running the company, and · Secondly, a performance related component to provide compensation for good
decision making in ensuring that the company is successful and profitable.
This means that whatever remuneration package is determined, it is essential to ensure that the directors have a stake in doing a good job for the shareholder. Each element of a remuneration package should therefore be designed to ensure that the director remains focused on the company and motivated to improve performance.
A balance must be struck between offering a package:
· that is too small and hence demotivating and leading to potential underachievement,
and
· that is too easily earned.
