This month's issue focuses on topics of interest to both the younger generation of CPAs preparing to enter the profession and the older generation seeking to pass on their knowledge and expand their engagement with education.A legally enforceable decree ordering an employer to pay to an employee retroactively a designated increase in his or her salary that occurred during a particular period of employment.A decision rendered by a judicial or Quasi-Judicial body that an employee has a legal right to collect accrued salary that has not been paid out to him or her.
Federal Civil Rights legislation provides for back pay awards to compensate the victim for economic losses suffered as a result of discrimination.
Governance structures and principles identify the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders) and includes the rules and procedures for making decisions in corporate affairs.
Corporate governance includes the processes through which corporations' objectives are set and pursued in the context of the social, regulatory and market environment.
Governance mechanisms include monitoring the actions, policies, practices, and decisions of corporations, their agents, and affected stakeholders.
Corporate governance practices are affected by attempts to align the interests of stakeholders. Their demise led to the enactment of the Sarbanes-Oxley Act in 2002, a U. federal law intended to restore public confidence in corporate governance. Tel) are associated with the eventual passage of the CLERP 9 reforms.
Interest in the corporate governance practices of modern corporations, particularly in relation to accountability, increased following the high-profile collapses of a number of large corporations during 2001–2002, most of which involved accounting fraud; and then again after the recent financial crisis in 2008. In contemporary business corporations, the main external stakeholder groups are shareholders, debtholders, trade creditors and suppliers, customers, and communities affected by the corporation's activities.Corporate scandals of various forms have maintained public and political interest in the regulation of corporate governance. Internal stakeholders are the board of directors, executives, and other employees.Much of the contemporary interest in corporate governance is concerned with mitigation of the conflicts of interests between stakeholders.In large firms where there is a separation of ownership and management and no controlling shareholder, the principal–agent issue arises between upper-management (the "agent") which may have very different interests, and by definition considerably more information, than shareholders (the "principals").The danger arises that, rather than overseeing management on behalf of shareholders, the board of directors may become insulated from shareholders and beholden to management.An important theme of governance is the nature and extent of corporate accountability.