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| 1.
| | ''Corporate governance''. |
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| The evaluation and selection of projects which are most likely to maximise shareholders' wealth, by the comparative analysis of their expected cashflows.
| | A committee of the main board of directors, with responsibility for setting the remuneration of executive directors and other senior management. |
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| | Sometimes abbreviated to 'RemCo' or 'Remco'. |
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| Similar evaluation techniques taking account of additional factors and considerations - as well as the expected project cashflows - including for example the existence of real options.
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| Also known as ''Project analysis.''
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| '''Points to note'''
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| Note for both definitons above that ''projects'' are anything involving expenditures for which the benefits, or some of them, occur at a different time from that of the expenditure or some it.
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| As well as capital expenditure, included are, for example, acquisitions and disposals, marketing expenditure, advertising, staff training or buying a new coffee pot for a staff refreshment station.
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| It is only worthwile devoting time and effort in formal project appraisal for projects involving material amounts of expenditure.
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| == See also == | | == See also == |
| * [[Real option]] | | * [[ALCO]] |
| * [[Real options valuation]] | | * [[Board of directors]] |
| * [[Sunk costs]] | | * [[Corporate governance]] |
| | | * [[EXCO]] |
| | | * [[Remuneration]] |
| === Other resources ===
| | * [[RNC]] |
| * [[Media:2015_07_July_-_Hidden_treasure.pdf| Hidden treasure, The Treasurer, 2015]] | |
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| [[Category:Corporate_finance]] | | [[Category:Compliance_and_audit]] |
Latest revision as of 03:57, 23 June 2021
Corporate governance.
A committee of the main board of directors, with responsibility for setting the remuneration of executive directors and other senior management.
Sometimes abbreviated to 'RemCo' or 'Remco'.
See also
