A review of BHPs 2019 Annual Report shows that the compensation paid to the chief executive officer
Question:
A review of BHP’s 2019 Annual Report shows that the compensation paid to the chief executive officer (CEO) is based on various aspects of performance. Some of these aspects performance relate to measures of financial performance while some concern various social and environmental aspects. In relation to the social and environmental aspects of performance, some of the performance indicators used to pay the CEO are disclosed as being related to reported improvements in
- Fatalities, environmental and community incidents, and occupational illness
- Health, environmental and community initiatives, community perceptions (including targets for reductions in greenhouse gases, water usage and community complaints).
REQUIRED
Why would a stakeholder need to know about the indicators used to compensate key management Personnel, such as the CEO? Further, is it reasonable that large organisations such as BHP are required to make such disclosures?
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It is particularly interesting to know about the performance conditions utilised in the compensation ...View the full answer
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