Agency theory and management remuneration Publicly listed companies provide a remuneration report as a component of the annual report, which is often available on the company's website.

Required 

Obtain the remuneration report for a publicly listed company. Examine the remuneration arrangement for the chief executive officer (CEO). Prepare a report which summarises your findings for each of the following:

1. What amount of the CEO's remuneration is in the nature of salary and cash bonus for the current year, and for the previous year?

2. What forms of remuneration other than salaries and cash bonuses does the CEO receive?

3. What proportion of the CEO's pay for the current reporting period is fixed and what proportion is performance based?

4. What measures of accounting performance, if any, are used to determine the CEO's bonus?

5. Explain the incentives for accounting policy choice that arise from the CEO's remuneration contract according to agency theory. Use specific accounting policies to illustrate your answer.

6. Can agency theory provide an explanation for the various remuneration components? Justify your answer.