DuHurst Corporation has $4 billion in assets, $3 billion in equity, and earned a profit last year as the economy boomed of $ 100million. Senior management proposes paying themselves a large cash bonus in recognition of their performance. As a member of DuHurst's board of directors, how would you respond to this proposal?

Yahoo, yes... bring it on buddies!!

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Originally Posted by lorraine1126

DuHurst Corporation has $4 billion in assets, $3 billion in equity, and earned a profit last year as the economy boomed of $ 100million. Senior management proposes paying themselves a large cash bonus in recognition of their performance. As a member of DuHurst's board of directors, how would you respond to this proposal?

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The return on equity is 3% this means the company has been underperforming and management might deserve a very small bonus but the Board should provide an incentive system that responds only to real growth in return on equity I would provide their bonus in the form of equity or options not cash