Comments on: Mayne: the real story behind the Cochlear pay revolt http://www.crikey.com.au/2012/10/17/mayne-the-real-story-behind-the-cochlear-pay-revolt/ now with extra source Tue, 18 Jun 2013 23:54:48 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: jennatilz mckrackin http://www.crikey.com.au/2012/10/17/mayne-the-real-story-behind-the-cochlear-pay-revolt/comment-page-1/#comment-224726 jennatilz mckrackin Wed, 17 Oct 2012 03:57:28 +0000 http://www.crikey.com.au/?p=323529#comment-224726 It seems like as much as people try to design executive pay, there are always loopholes and circumstances which can circumvent the intentions. Perhaps all contracts should include an overriding fair and reasonable person test. Would an independent person consider to the granting of options as reasonable given the circumstances? The other point being that although I am a chartered accountant and I understand the pressures and rules for auditors, it seems as though so many companies are getting away with huge holes in their financial statements and I wonder how effective the audits are. It seems like as much as people try to design executive pay, there are always loopholes and circumstances which can circumvent the intentions. Perhaps all contracts should include an overriding fair and reasonable person test. Would an independent person consider to the granting of options as reasonable given the circumstances?

The other point being that although I am a chartered accountant and I understand the pressures and rules for auditors, it seems as though so many companies are getting away with huge holes in their financial statements and I wonder how effective the audits are.

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