The first item is that you have found that RTMC's human resources department stopped undertaking a market analysis of compensation for key executives five years ago. This was done at a time when RTMC facing severe revenue shortages and determined that a short-term cost savings would be to terminate the contract with the compensation consultant who reviewed the fair market value of key executive compensation. You have learned that neither the old contract nor any replacement system for reviewing market compensation was ever reinstated.

As part of your research you also find out that two years ago, RTMC recovered from its years of operating at a significant loss and the corporation's Board of Directors gave RTMCCEO a large bonus, $300,000, on top of his existing compensation of $675,000. They simultaneously increased his salary to $950,000 with guaranteed bonuses going-forward of 30% of his salary for the years that RTMC's actual revenues were 20% over the revenues anticipated at the beginning of the year on their proposed budget. In the year that ended just before you started as Chief Compliance officer, RTMC had revenues of 30% over budget. The CEO's bonus would be paid as soon as the outside auditors finish their review of the financial statements, anticipated to be around the end of July.

• Explain for the reader how you would further investigate this issue.
• Provide your recommendations for how RTMC will resolve each issue.
• Provide your corrective action plan recommendations for how RTMC can prevent a future occurrence of each issue.