Question 1 (Source: Chapter 1) At a recent meeting was conducted by Ghanim Al Ghazali, one of the investors Hatiem Al Mammari has argued that the CEO is earning the highest salary in the Company. Although, there is an increase in the profit of the organization each year, however there were no dividends distributed over the last 10 years to the shareholders. In addition, the company's stock price had decline nearly OMR 0.7 per share for the last 7 months. Another shareholder, added that there is a document described the company's profit-sharing plan, stated that all managers were partially compensated on the basis of the company's profit. That makes no sense, because the shareholders are the owners of the company, and the management should work for the best of shareholders. All shareholders argued and complained that there are no benefits from profits that the managers are trying to maximize. A- Explain the nature of the issue outlined above by Mr. Ghanim Al Ghazali other stockholders. B- Explain any three actions that companies can take to resolve the issue outline by the stockholders.
