Investa is a public listed company that manufactures and sells home furniture. It has just survived a powerful shareholder rebellion. At the recent annual general meeting, the shareholders showed up in greater numbers than in other previous years because of concerns about the RM5 million compensation package awarded to the Chief Executive Officer (CEO). The shareholders became even more sensitive about the issue when Investa's board of directors failed to appear at the annual general meeting and became angrier when they were not permitted to ask questions at the meeting. This was reported in the financial press hence the company gave in and allowed only one minute for investors to highlight their concerns. One investor complained that the company was no longer giving breakdown of sales on a per-store basis so that it was difficult to determine how the company was doing. About 30 percent of the shareholders demanded removal of all directors of the company. Investa's share price dropped on the day following the meeting

(a) Corporate governance is considered an important part of the ethical culture of a company. Explain the type of tone that the Investa's board of directors set for the company.

(b) Another important aspect of corporate culture is accountability. Was Investa's board of directors avoiding accountability? Explain your answer.

(c) When CEOs fail to ensure satisfactory company performance, should they experience a salary reduction? Explain your answer.

(d) Is a poor tone-at-the-top established when CEOs are given and accepted bonuses, even when the company does not perform well? Justify your answer