Question one

At the recent workshop of the Kenya Institute of directors,Mr$.$ Knowledge a renown investor in the country expressed grave concern that the directors in the country have lost focus.

In support of his position,Mr$.$Knowledge cited the case of a CEO of one local bank who was reported to be earning the highest salary in the region and staying in a golf club at the cost of the bank.Mr$.$ Knowledge asked what the value of such expenditure brings to the shareholders of the bank.

a$)$ Explain the nature of the issue being outlined above

b$)$ Explain any three actions that companies can take to resolve the issue outlined by mr$.$Knowledge?