Global Issues in Accounting

Description

read company’s proxy statement (costco or other company) and answer questions about CEO annual incentives

I’ll provide the link and you need to read the report, answer three questions, the last one needs to do some researches

Questions:

Questions of this session relates to the design of CEO annual incentives. Note in this session, we only focus on the shortterm incentives / annual incentive, and we are NOT focusing on long-term incentives such as stock and options. We only focus on the short-term incentives for the CEO, NOT for other people in the top management team (e.g. CFO, COO). Choose a firm and download its proxy statement of fiscal year 2018 from the SEC website. And answer the following questions: (1) How does the firm evaluate CEO’s annual performance? What are the performance criteria / performance measures / performance targets used in CEO annual incentives? (max 300 words, insert the link where you download the proxy statement – references excluded) (2) Evaluate the performance criteria and evaluation method used in CEO annual incentive contracts. Is it aligned with the company’s strategy? What are the potential problems you identify? Use evidence to support your arguments (Max 300 words – references excluded) (3) Briefly summarize the impact of COVID-19 on this firm and come out with realistic recommendations of annual incentive compensation contract design for the CEO. E.g. will you adjust performance measures, target setting and evaluation mechanisms of the annual incentives for the CEO? How? Use evidence to support your arguments (Max 250 words – references excluded)