Corporate governance Essay Example | Topics and Well Written Essays - 2000 words

Corporate governance - Essay Example However, with tightening the belt on the expenditure Stamford International could realize a fruitful financial year as the previous year. With a successful previous financial year, the company has been reluctant to ensure that all expenditure and incomes in the company are appropriately analyzed. The company needs to streamline all the departmental heads. The departmental head should ensure all expenses in the departmental are tightened in order to provide extra cents in value in the earning per share. The effort the staff had displayed did not continue. We had achieved more than the company’s expectations. This made all staff members relax. If this continues, the earning per share may reach a record low value of 3 cents per share. Regardless of the internal conflicts a company has; the investors and stakeholders should not be dragged to the mud. The current situation may result to stakeholders selling their shares at a lower price. In this first quarter, the value per share i s at 47 cents. This is a 5 cent deficit from the previous year’s first quarter earnings. If all departments could maximize their efforts, the company would even be able to exceed the value of 52 cents per share. The earning 52 cents per share in one quarter shows the potential of this organization. In the board meeting we had after the first results of this quarter, all the shareholders had recommendations and corrections they would have implemented. These recommendations would enable the organization to add the value of its share. From the meeting, I realized the company was not operating at its full potential and with adjustments department head could increase the output of the company. It was also generated from the board meeting that investors would abandon the company if we do not register I higher share value in the second first quarter. Additionally, if this scenario does not change, shareholders may opt to sell their shares at lower prices in order to avoid getting ve ry low dividends. This meant that the second quarter of this financial year would be the determinant of whether or not the company will retain its shareholders and investors. The move to start streamlining the company from the departments is the fact that some departments played a significant role in the declining in the value of the company’s shares. For instance, the procurement department contributed to a 2 cents loss per share. This loss was generated from bad inventory the department had received. The negligence of this department made the company incur expenses in replacing the bad inventory. This expense could be avoided if the department was under proper management. In my opinion, the public presentation of the earning per share should be increased in figures. However, these adjustments should be made in consideration of what the earning peer share could be if all expenses remained constant in all quarters (6). The company should also use forecasts in planning the adj ustment. However, forecasted figures developed should be accurate. The agreement should also be jointly be reached upon by the management and board members. In my opinion, the management should consider increasing the earning per share by 5 cents. In adding 5 cents on the current 47 cents per share, the value will rise to 52 cents per share. Since we are at the first quarter, 52 cents earning per share will portray a good progress among the stakeholders. This will also lead