(a) A group of major shareholders of Zedo plc wishes to introduce a new remuneration scheme for the company's senior management. Explain why such schemes might be important to the shareholders. What factors should shareholders consider when devising such schemes?
(b) Eventually a short-list of three possible schemes is agreed. All pay the same basic salary plus:
(i) A bonus based upon at least a minimum pre-tax profit being achieved.
(ii) A bonus based upon turnover growth.
(iii) A share option scheme.
Briefly discuss the advantages and disadvantages of each of these three schemes.