FMF9

Syllabus A3. Stakeholders & Corporate Objectives 3 / 4

a) Identify the range of stakeholders and their objectives 
b) Discuss the possible conflict between stakeholder objectives 
c) Discuss the role of management in meeting stakeholder objectives, including the application of agency
theory.
d) Describe and apply ways of measuring achievement of corporate objectives including:
i) ratio analysis, using appropriate ratios such as return on capital employed, return on equity, earnings per share and dividend per share.
ii) changes in dividends and share prices as part of total shareholder return.

e) Explain ways to encourage the achievement of stakeholder objectives, including: 
i) managerial reward schemes such as share options and performance-related pay
ii) regulatory requirements such as corporate governance codes of best practice and stock exchange listing regulations.
Stakeholders & Corporate Objectives