Home > Uncategorized > Director and Auditor Responsibilities re Executive Compensation and Related Risks

Director and Auditor Responsibilities re Executive Compensation and Related Risks

April 2, 2012

The following link is to an interesting BankDirector.com article discussing enhanced Director responsibility for oversight of executive compensation and related risks that can arise from that compensation, Click Here.  The PCAOB also has a proposed new auditing standard that in part contains provisions relating to the evaluation of executive compensation, broadly stated: 3. Obtaining an understanding of a company’s financial relationships and transactions with its executive officers that is sufficient to identify risks of material misstatement, Click Here.  Possible evaluation of executive compensation and tone-at-the top are two topics that are relevant for discussion as potential corporate and audit risks that can arise from or relate to these areas have long been discussed and recognized.  However, what more to do in those areas in terms of audit, Director oversight, evaluation or disclosure are issues that raise significant questions, perhaps including whether is it possible to develop recognized criteria or standards.

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