Question 5

Please read the news from the below links:

https://www.9news.com.au/national/coronavirus-jobkeeper-companies-accused-of-payingceo-bonuses-amid-workers-losing-jobs/b70b9663-47b1-459b-b6d5-9341779ed1e1

https://www.smh.com.au/business/companies/pay-it-back-readers-on-profitable-companiespocketing-jobkeeper-20210325-p57dvw.html

https://thenewdaily.com.au/news/2020/09/01/jobkeeper-ceo-bonuses/

https://inqld.com.au/business/2020/09/11/executives-claiming-millions-in-bonuses-whiletheir-companies-receive-jobkeeper-subsidy/

After thoroughly reading the news, please answer the below questions:

a. It is revealed from the news that companies which benefited from the multi-billion-dollar JobKeeper program have paid hefty bonuses to their CEOs. Discuss how by taking bonuses from JobKeeper, the executives have created 'Agency Conflict'? How do you compare such activities with accounting scandals, such as Enron and WorldCom? (12 Marks)

b. To what extent do you think that paying bonuses to its executives out of JobKeeper payment are ethical? What activities should executive of these companies undertake to be able to serve the best interest of the shareholders. (6 Marks) 4

c. How many companies have disclosed that they have paid bonuses to executives while receiving the JobKeeper. Identify a few of these. (6 Marks)

d. Who are the largest paid executives in Australia? (3 Marks)

e. In contrast to hefty bonuses to their CEOs during the pandemic, many of these from the JobKeeper program, are there any executives who have reduced their salary? (5 Marks)