Automatic Flight Control Systems Engineering Essay

Programmed Flight Control Systems Engineering Essay We face a daily reality such that innovation is, if not being improved, created continuously. Regular new enhancements, innovations and revelations are made. One industry that is consistently on the lead with regards to new developments and advancements is the Aviation Industry. Throughout the years, airplanes have been confronting significant enhancements for the structure, eco-friendliness, life-length, scope of flight. In any case, perhaps the best improvement that have been done on each airplane (business) that had the greatest effect in the Aviation Industry and most presumably the primary motivation behind why the business has been blasting up is the enhancements done in the Avionics area, explicitly the Automatic Flight Controls. First and foremost, Pilots were prepared to fly the airplanes alone. In any case, following quite a while, it is currently the pilots programming the PC, disclosing to it where to fly, at what height, and so on. This PC is the AFCS (Automatic Flight C ontrol System). In today’s present day universe of flying, it is the AFCS who is in fact flying the airplane, from cruising to landing, and for some until stopping. The AFCS has a great deal of points of interest when contrasted with human pilots with regards to flying. Here are some of them: The AFCS can defeat lacks with regards to soundness and control. The AFCS improved the taking care of characteristics. For example, when the velocity or the elevation of the airplane should be consistent. The AFCS is progressively exact and thus can do a few errands that the pilot can't do. * Source: Emirates Aviation College’s Automatic Flight Control Systems Book (Chapter 3.1.3) To improve comprehension of the AFCS, its various pieces will be talked about, for example, the Autopilot System, Flight Director System, Auto Throttle System and so forth. The data about the AFCS will be founded on one of Boeing’s exemplary airplanes, the 737-500. FLIGHT MANAGEMENT SYSTEM (FMS) T he Flight Management System is route, consolidated flight control, a Built-In Test Equipment (BITE) and a direction framework. The FMS gives control and activity of five autonomous subsystems to give sidelong route (LNAV) and vertical route (VNAV) for execution the board and ideal flight profiles. The Flight Management System isn't marked to any control board or any single segment as it is a coordination of five autonomous subsystems. These subsystems are: Digital Flight Control System (DFCS) Inertial Reference System (IRS) Autothrottle Electronic Flight Instrument System (EFIS) Flight Management Computer System (FMCS) * Source: United Airlines’ Boeing 737-322/522 (page 6, Chapter 22-2, Oct ’99) from Emirates Aviation College Library This framework was intended to build eco-friendliness, wellbeing and diminishing remaining task at hand. For the two pilots, this implies they can choose full FMS activity or Autopilot Flight Director System (AFDS) for a total programmed f light. They can even utilize the Control Display Units (CDU) to give, for manual flight, reference data. The executives and activity is absolutely heavily influenced by the flight group. There are just sure tasks that must be executed by the flight team. They are: landing rollout controlling, push inversion, speed brake activity, height choice, landing apparatus and fold activity, instrument landing framework (ILS) tuning, push commencement, brake discharge, plane turn and directing during departure roll.

Importance of Mental Toughness in Sport

Killing of the Buddha Essay Example | Topics and Well Written Essays - 250 words - 187

Executing of the Buddha - Essay Example The Koan ought not be taken since executing conflicts with Buddhist lessons. Rather, the koan advocates for self-cross examination with a point of getting lucidity perspectives that advances the improvement of one’s self. In the Koan â€Å"finding the Buddha† represents a stroll on the way of edification. The procedure can be deciphered to incorporate our way or the course that an individual takes throughout his life. The â€Å"Buddha† that we should speak to an admired individual flawlessness that we have about ourselves. The Buddha speaks to us just as our projection to the outside world. The Buddha comprises of our origination of outright edification (McGee, 2015). The â€Å"Killing of the Buddha† implies that people are frequently off-base in the origination of themselves. The Koan directs that it is functional and reachable for a person to isolate himself from the misguided judgment of himself through contemplation. In the event that an individual acc epts that he has otherworldly illumination, at that point the individual must dispose of the discernment and think. Through contemplation, the illumination has no changelessness, and everything continues evolving. The Koan instructs us that on the off chance that we see ourselves as having all arrangements, at that point such an observation must be maintained a strategic distance from, and we should address such answers for show signs of improvement arrangements. By following the Koan and continually reflecting, at that point one makes a learning procedure and continues edifying. Such a procedure fortifies the excursion to being finished. At last, one discovers that the person is a hidden Buddha (McGee, 2015).

The Phillipines Essays - Maritime Southeast Asia, Philippines

The Phillipines In the course of recent years, the Philippines' economy has experienced a striking change. In the late 80's and mid 90's the Philippines were left with poor political initiative, monetary development, and moderate paced financial turn of events. Today it is perceived all inclusive that the Filipino economy has turned around to create a positive development. Perhaps the greatest achievement has been the GNP development rate ascend from zero in the mid nineties to somewhere in the range of 5% and 6% today. The present president, Joseph Ejercito Estrada, is following the solid pace set by previous president. Under the Ramos organization, significant advances were taken towards monetary progression. These means incorporated the opening of banks and broadcast communications parts, and the changing of venture laws, which made a progressively appealing business collusion and more grounded business associations with the United States. In light of these occasions, the United States stays to be the main exchanging accomplice of the Philippines, and they are among the United States top 25 exchanging accomplices. As indicated by President Estrada's discourse on January 8, 1999, on account of the activities of previous president Ramos our nation keeps on getting a charge out of positive development in spite of the emergency in Asia. In the locale a year ago, just Singapore and the Philippines posted positive development rates. A portion of the main considerations concerning the financial development during Ramos' term in office that Estrada means to keep on focusing on are outside relations, instruction, wellbeing, transportation, banking and exchanging. Present day training in the Philippines is turning into a significant issue in the development and adjustment of the nation's economy. During the most recent fifty years, instruction has become a significant worry for this nation, and it has as of late been made all the more promptly accessible through development. In spite of this extension, the nature of training was as yet unacceptable and stays a worry today. One issue confronting the training framework was a 30% contrast in the proficiency level among country and urban regions. Likewise, all families beneath the destitution line couldn't bear to teach their youngsters past primary school. These and different issues like poor educator execution, packed homerooms, absence of language aptitudes and low wages could profit by new projects planned for improving work efficiency and family pay. In 1990, more than 10,000 outside understudies concentrated in the Philippines, most of which were American. Up to this point, the majority of the understudies going to these schools must be instructed in three dialects; English, Filipino and Spanish. Presently the schools principally center around Filipino, which will alleviate a lot of weight on understudies and personnel, and advance quicker advancement later on. Another discussion saw by numerous American understudies was the way that numerous training strategies were fluctuating continually, and were probably going to be changed before instructors got used to them. The most significant worry of the instruction framework in the Philippines is the quantity of understudies who really complete school, and are then incapable to get a new line of work that they were not terribly overqualified for. These prepared staff could encourage monetary turn of events if appropriately used, which is the reason the Department of Education, Cultur e, and Sports is attempting to grow better compulsory arrangements for and closer direct management for its schools. The workforce of the Philippine individuals is horrible. Insufficient employments are accessible for the individuals, and the ones that are low paying and long working. More than 40 % of the workforce were under 15 years old in 1990. Horticulture involves 45 percent of the present workforce, which is a lot of lower than it had been previously. In the most recent decade, the administration division (business, money, transportation, and a large group of private and open administrations) turned into the lingering manager, representing right around 40 percent of the workforce. A significant issue with the workforce is the joblessness rate. The joblessness rate is as of now 11.4 %. The most noticeably terrible part about this is most of the jobless is youthful, unpracticed individuals who were generally knowledgeable. Since the absence of openings for work, the informed individuals get themselves jobless on the grounds that everybody is battling for the higher employments. Another significant angle that helps direct the financial development of a nation is wellbeing. In the Philippines the battle against sickness has been expanding throughout the years. Future rose

Is The Criminal Justice System Racially Biased? Essays -- essays resea

Is the Criminal Justice System Racially Biased? Most criminologist utilize two wellsprings of criminal equity information in the US: the Uniform Crime Reports (UCR) and the National Crime Exploitation Surveys (NCVS). The URC information is produced using law implementation offices and incorporate wrongdoing episodes answered to or got by the police. NCVS information is gotten from an extremely mind boggling national study of an example of homes what's more, give data about wrongdoing episodes and casualties for both revealed and unreported wrongdoings, barring murder. For my report I acquired research data from polls and from a few reading material. I gave the poll concerning inclination in the criminal equity framework to four whites, four blacks, one Asia, and one Mexican. In spite of the fact that this example isn't delegate of racial perspectives as a rule, it can used to build up a superior feeling of contrasts among understudies.      To talk about my discoveries completely I should characterize a couple of terms. The Criminal Equity System is the system of offices that react to wrongdoing, including the police, courts, correctional facilities, and detainment facilities. Minority Group is a gathering of individuals who, due to physical or social qualities, are singled out for differential and unique and who view them as objects of group separation. Segregation is the demonstration of singling out for out of line treatment. Naming is generalizing, or putting a tag on somebody, and treating them as needs be. Self-fulling Prophecy is an assumption regarding how things will be the circumstances that they anticipated or anticipated. At last, Differential Affiliation is the possibility that collaborating with others learns criminal conduct.      It is no mystery whites and blacks in America experience life in an unexpected way on account of their race. In this manner, whites and blacks see the criminal equity framework in an unexpected way. My examination discovered 70% of those contemplated concur the courts do not offer equivalent treatment. Albeit both concur that the framework is one-sided, whites appear to have an increasingly positive view about the entire framework, while Blacks feel the framework is degenerate and neutralizes' them. half of my non-white example what's more, 20% of my white example felt the courts separate. James Henslin, creator of the content Social Problems, states "[Violent crime] subsides with salary ... individuals with higher salaries live in better, progressively prosperous and less viole... ...that keep on target poor minorities.      My results showed that there was contrasts in the manner dark and white understudies in American culture see the criminal equity framework. Since race can be contrasted with SES non-whites have a progressively negative perspective on how frequently police separate. Then again whites are not uninformed to the negative police separation non-whites face; all things considered they feel it happens a lot short of what it really does, or never. Comparable, in the courts, more non- whites feel their is separation. My response to this could be that non-whites are being indicted, going to prison and getting capital punishment, while white are the ones suing, and are not getting indicted for violations when they are captured. While we as a whole concur the criminal equity framework is degenerate, my examinations show, whites and blacks can't help contradicting the degree to which it occurs. This is an clear outcome since blacks and whites are in two separate good networks. Blacks have been contrarily named, and trashed as lower class residents who cause inconvenience. Inturn they have been the casualty of enactment that keeps them in the inauspicious status they are in.

Choosing a Research Writing Service

Choosing a Research Writing ServiceChoosing a research writing service is like choosing a personal assistant to do your work for you. When it comes to conducting research, the writer you choose to do your research is the one who will be in charge of your research and will be responsible for all the hard work and expense involved.Choosing a research writing service can be very costly, as this is a type of service that is usually outsourced by a larger company. However, if the research you need is done properly, it can be free and fast. Also, your service provider should have various other skills to help your research project with as well.The writing service may have a bachelor's degree or a business degree. If you know the type of work the writing service does, ask the writer about his education. This is one way to ensure that your writer is well educated on the subject matter of your research.A writing service will provide you with the latest in research writing. This means that thei r writers are up to date with current trends and developments. An experienced writer will also have the knowledge and experience to compile data, update databases, and refer to industry professionals. A good research writing service will have the necessary resources to gather data and information from various sources.One of the best ways to assess the reliability of a writing service is by asking them about their educational background and credentials. Do not forget to inquire about the companies they belong to, because in most cases, that will give you an idea of the type of work they produce. In addition, you will be able to determine whether the writer you are hiring is the same as the one who wrote the research document you want to use in your project.You should look at the types of research papers from a writing service can write. Your choice of services may depend on the subject of your research paper. You may want to choose a research writing service to do a report about a ce rtain disease, whereas another writer may be able to do the same research on sports. A writing service may also be able to write for academic, medical, scientific, or business magazines.Research writing is a competitive field in which there are many writers competing for work. A good service will choose the best writers to write on your project. They may choose inexperienced writers or very well-experienced ones depending on your needs.Using a research writing service can be a great asset when it comes to researching a particular subject. If you choose a reputable writer, you can rest assured that your project will be completed in time. Choosing a writing service will make your project more effective.

Ownership And Control Of Wh Smith Plc Finance Essay - Free Essay Example

Introduction to WH Smith PLC. WH Smith PLC is a UK company recognised as a newspaper, periodical and book retailer currently standing as an Ultimate Owner. Historically owned, WH Smith was established in 1792 as an Ltd, originally family owned and passed down until the last family member owned all ordinary shares and considered the major shareholder. WH Smith emerged as a PLC where its shares were sold to the public. Eventually, the Smith familys control faded resulting in the last family member leaving the board in 1996. (WH Smith PLC, 2010) 1b.) Classical Objective WH Smith is a corporate business encountered in fulfilling market share and current earnings (profit) all in which revolve around the interests of its owners (shareholders). Shareholders control the corporations direction and policies (electing Board of Directors), who in turn select top management whom serve as corporate officers and manage the operations of the firm in the best interest of shareholders. (Damodaran, 2006) Corporate financial theory determines stock price maximisation as the classical objective in decision making. (Damodaran, 2006: p. 11) Once shares are traded and markets are viewed as efficient, the narrowed objective is to maximise shareholder wealth for which translates through the maximisation of share price. Share prices are accessible and observable for judging the performance of a PLC and constantly reflecting company performance. If stock price maximisation is to be a dominant objective, assumptions are made that managers are in fact responsive to the owne rs of the firm. (Damodaran, 2006) WH Smith shareholders In the UK shareholders typically have ultimate firm control through hiring and firing the board of directors. (Hillier et al, 2010) WH Smith has a diverse shareholder base consisting of no individual/institution controlling the corporation. (Mallin, 2010) The company measures as an independent company ranked as A+ whereby no shareholder exceeds 25% of total ownership. WH Smith gains independence as 75.1% of its shareholders are known making it impossible for unknown shareholders to own 25.1%+. (Fame, 2011) To examine the ownership and control WH Smith pursues, this assignment will focus on the known 95 shareholders identified on Fame whom together hold over 75.1% of shares. This assignment will predominately examine the top 10 of the 95 shareholders. (See table 1) Not only do the top 10 shareholders hold fairly high stakes in the company; the top 6 in particular own a total of 52.9%. This indicates more than half of ownership and control is held by the selected majority. The maj ority are defined as, a group of shareholders who collectively control more than 50% of a corporations outstanding shares. (Besley et al, 2008) The majority top 10 is also illustrated on pie chart (1) where it shows the ownership range from 10.51% to 4.99%. Critically, ownership dispersion can result in powerless shareholders as no individual among them has any appreciable voting power or control. (Leech, 2002) If ownership is too dispersed amongst a high number of small shareholders, a downgrade in corporate governance is evident as little incentive is invested in examining the boards actions. Large shareholders are likely to have more power to monitor management activity thus strengthening corporate governance. (Kostyuk et al, N. D) Since WH Smiths top 10 shareholders are large associates with concentrated power, the company has strong corporate governance since larger stakes encourage better monitoring to ensure shareholder interests are served. WH Smith represents a variety o f foreign shareholders in which may also affect monitoring corporate governance. Fame demonstrates WH Smith is involved with over 10 different countries for which can create problems. (European Central bank, 2008) Foreign companies must comply with the differing regulations on accounting standards, disclosure and transparency and inevitably, with the norms of that countries corporate governance. (Economist, 2001) However, the chosen 10 only consist of shareholders from GB, US and FR. (Fame, 2011) Fortunately GB holds a dominant representation amongst the top 10 thus monitoring is less of an issue. Top 10 WH Smith Shareholders (Table 1) Shareholder Name Country Type Ownership (%) Standard Life PLC GB A 10.51 Affiliated Managers Group US F 10.01 Artemis Strategic Asset Management Limited GB E 9.69 Lloyds Banking Group PLC GB B 9.41 AXA FR A 6.96 Blackrock, Inc. US F 6.32 Total shareholder rate above 50%: 52.9 JP Morgan Chase Co US B 5.75 AXA Financial SA N.A. F 5.48 Jupiter Fund Management PLC GB E 5.31 Employee Share Scheme Trustees N.A. E 4.99 Total shareholder rate:   74.43 A: Insurance Company F: Financial Company E: Mutual Pension Fund/Nominee/Trust/Trustee B: Bank Pie Chart (1) showing the level of ownership amongst Top 10 Shareholders at WH Smith Pie Chart (2) showing the level of ownership in relation to type of Shareholding Company Conflicts of interest and Agency Costs 3a.) Conflicts of interest between Shareholders (Majority Vs Minority) WH Smith is considered a large organisation consisting of various shareholders (individual and institutional) each likely to possess a diverse range of ownership interest. (Damodaran, 2006) Institutional shareholders hold a dominate position amongst the majority as they hold higher stakes in the company thus overpowering the considered minority in decision-making. (Mallin, 2010) Since the majority own 50%+ of equity stake, many companies are controlled by few large top shareholders (WH Smith top 6 shareholders) that generate a powerful voting block where the majority cast votes and control the appointment of directors. (Leech, 2002) Consequently, WH Smith had experienced a critical period during 2004-2005, where management performance was criticised. A specific conflict emerged due to irrational incentive payments proposed by the remuneration committee. One in three WH Smith shareholders rebelled against the boardrooms pay policies by either opposing or abstaining from a vote to approve its remuneration report. (Independent, 2004) Since some shareholders disproved the pay plan, others supported it resulting in a conflict of interest between shareholder views towards fair compensated operations. Around 100 million shareholders backed the groups pay plan, but 34 million voted against it and a further 17 million abstained. (Independent, 2004) With the risk of insufficient voting from all shareholders, WH Smith was exploited to weak corporate governance. Conflicts of interest may arise amongst shareholder companies. Insurance companies and banks often vote with management due to potential business interlinks they wish to pursue. Nonetheless, mutual and pension funds contrast with management as internal benefits are less evident. (Eakins, 1993) Academics argue shareholders tend to follow the Wall Street rule and either vote with managers or sell their stock when policy disagreements occur. (Eakins, 1993) In relation to WH Smith, pie chart (2) illustrates 54% of the top 10 shareholders are insurance and financial companies (including banks) indicating a large % vote alongside managers, whereas mutual and pension funds make up 20%. Such distinctive shareholder interest can generate conflicts of interests throughout board voting. Further potential conflicts are between pension funds themselves. Public funds primary goal is to avoid poor performance, while private funds try to achieve superior performance a fine but very important distinction. (Monks et al, 2008: p 149) Since mutual and pension funds hold the least percentage (20%) in the top 10, the risk of this differing interest is unlikely, particularly since most pension funds are not present in the top 6 of the majority holding 50%+. Therefore their level of ownership and control is minor. 3b.) Conflict of interest between shareholders and Managers Although shareholders are ultimate owners of the company, the day-to-day operations of the business are delegated to the board of directors and managers thus creating an agency relationship. (Hiller et al, 2010) Collectively, shareholders are regarded as outsiders and no one shareholder has the power to influence or control the firm. In effect, the principle hires agents to control and base decision making around shareholder interests. Focussed on maximising stock price and shareholder wealth, corporate finance exposes itself to risks where the possibility of conflicts of interest between shareholders and managers arises for which may obstruct the firms classical objective. Managers interests are known to revolve around job security and firm growth for which allows greater control, corporate power and higher salaries. (Band, 1992) Conversely, shareholders aim to maximise profits through share prices, for which in turn maximises their wealth. (Damodaran, 2006) The separation in owne rship control can create problems known as Agency costs. (Mallin, 2010) Firms incur agency costs to reduce conflict of interest between principle and agent. (Baker et al, 2005) Theoretically, shareholders are assumed to have the power to discipline and replace individuals in management level who do not achieve shareholder interests. (Damodaran, 2006) This is known as a proxy fight (Hillier et al, 2010). In relation to WH Smith, such power is exercised through their Annual General Meeting (AGM) whereby shareholders assess, evaluate and monitor management performance. A further mechanism is through the board of directors whose duties are to ensure managers serve shareholder interests and achieve the corporations classic objective. In return the board is kept informed of the views and concerns of major shareholders for any decisions made on election/re-election. (WH Smith, 2010) WH Smith presented a rapid decrease in share prices during 2004 to late 2005 straining shareholder wea lth and reduced the value of the firm. It can be assumed the various conflict of interests proposed in this assignment were provoked throughout this period. Coincidently, a change of management was also reported whereby former board member Richard Handover (whom was Chief Executive Officer since 1997) was appointed to take over Martin Taylors position as Chairman as the latter retired due to ill-health. Assumingly, this replacement enforced a positive impact on share price as figures on graph (1) show an increase from 290.03 to 366.00 for which inconsistently improved until late 2008. In relation to the classical objective on share price maximisation, the best-case scenario of a conflict free corporation is when managers of a firm put aside personal interests and instead maximise shareholder interest. (Damodaran, 2006) Since shareholders consign their interests to managers, they expect positive results. Theoretically, this commitment may occur due to the intimidated nature sharehold ers uphold since they have control to replace management if unimpressed. (Damodaran, 2006) For example, in 2003, the previous Chief Executive Officer (CEO) of WH Smith was sacked within the weeks after a disappointing Christmas performance (BBC News, 2004) to fulfil shareholder interest. Statements clarified that there has been strong shareholder criticism of executive performance. (BBC News, 2004) Astonishingly, the newly appointed Handover was referred for re-election as statements verified Mr Handover has come under fire for disappointing trading as votes were adamant for an earlier leave. (Telegraph, 2004) Since the Chairman ensures the interests of shareholders are actively met, one can assume the fluctuated share price performance may be due to a disappointing effort in serving shareholder interest. Furthermore, directors do not necessarily spend productive time on their fiduciary duties; mainly due to other commitments served in different corporate boards. (Damodaran, 2006 ) For example, Handover was also Chairman of the Remuneration committee at Royal Mail PLC group. (Bloomberg, 2011) Moreover, studies found that many directors hold small equity stakes in their corporations. Therefore, many find it difficult to empathise with the dilemma of shareholders when share prices decrease. (Damodaran, 2006) Managements ownership of shares is predicted to positively affect firm value (Band, 1992) as its assumed they will be motivated to increase share value. Unfortunately, WH Smith fails to follow this since its current Chairman Robert Walker holds only 0.02% of ownership whereas CEO Kate Swann holds even less. In fact, some argue, although the CEO was given 141,000 shares once joined, she had not spent any of her own cash on buying shares. So she has no faith in the company? (Independent, 2004) Additionally, WH Smith sales were reported as unacceptable during its critical period as the company revealed exceptional operational costs for which strained the f irms profit. Swann clarified the companys cost base was to be materially reduced. (BBC News, 2004). Corporate theorists suggest the board of directors are the insider body that represent the authentic owners and who should ensure all operations within the business are carried out in the best interests of shareholders. As such, shareholders do not appreciate excessive corporate expenditure (Hillier, 2010) especially if resulting in share price reduction. WH Smith managers acted towards their own desires by strengthening management levels and improving store image (BBC News, 2004) resulting in decisions that made managers better off at the expense of shareholders presenting a direct from of agency cost. (Damodaran, 2006) Although graph (1) entails a fluctuated performance it also illustrates an improved increase through its variations since share prices increased from 366.00 in 2005 to 448.20 in early 2009. In 2004 the CEO was typically appointed through the standard procedure of t he UKs corporate governance whereby the majority casted votes and appealed Swann as WH Smiths next potential. Being CEO for 8 years, Kate Swann has won plenty of fans amongst shareholders (This is money, 2010). The CEO is the most senior manager and in ultimate control of the day-to-day business operations. Since this position plays a crucial role, Swann is evidently targeting shareholder interests whilst reducing conflict between shareholder and management. 3c.) Minimising conflict of interest Since potential conflicts can arise, shareholders often issue incentives to encourage management to act on their best interest. One way to minimise conflict of interest is through managerial compensation (Hillier, 2010) in particular, cash bonuses. In 2010 the company increased both executive cash bonuses under the Annual bonus plan. The CEO is given the chance to earn an additional 200% of the basic salary and the Financial Director 130%. (WH Smith, 2010) This shows a balanced incentive for managers to principally keep shareholder interest in mind. In turn, an effective remuneration committee (non-executives) are able to conquer payment packages (base and bonus) to align performance level better with the interests of shareholders. As a result, managerial compensation will remain efficient in the long run, motivating managers to maintain positive performance in order to maximise total salary whilst minimising conflict of interest. To assess the extent pay incentives work in alig ning management performance with shareholder interest, an accurate analysis is measured through the Total Shareholder Return (TSR) rather than dividends per share and capital gain since TSR measures shareholder wealth. Since WH Smith consists of only 2 executives, I looked at CEO and Finance Director Base and total (Base + Bonus) remuneration % change against the companys TSR. TSR % = (Stock price end of period Stock price start of period) + Dividends per share Stock price start of period WHSmith PLC TSR Date Close Open Dividends 31/08/2010 407.60 405.00 19.4 01/09/2009 438.70 448.20  28/08/2009 441.10 447.50 16.7 01/09/2008 391.25 380.50  29/08/2008 385.00 378.50 14.3 03/09/2007 410.00 406.20  31/08/2007 409.50 403.50 11.8 01/09/2006 367.50 350.00  31/08/2006 340.00 345.71 9.3 01/09/2005 366.50 369.00  31/08/2005 369.00 366.00 13.7 02/01/2004 245.00 215.00  Date TSR 2004-2005 78% 2005-2006 -5.34% 2006-2007 20.4% 2007-2008 -1.7% 2008-2009 20.32% 2009-2010 -4.73% Graph (2) illustrates a correlation between share price and TSR indicating that as share price drops, shareholder wealth is also at risk. For example, as WH Smiths share price decreased during early 2005/06, this reflected in TSR. The fluctuations presented on graph (1) also correlate with the variations in TSR thus supporting the concept that managerial decisions can have an effect on shareholder wealth. Managerial compensation is frequently connected to financial performance. Thus it is interesting to see if pay incentives propose an influence on managerial performance. Monitoring what management does is a major practice in reducing conflict. Graphs (3-6) illustrate the % change in base and total salary in relation to TSR amongst both executives. However, pay adjustments will not be made until after the previous years performance is known. Thus for an accurate representation for the related correlation between salary and TSR I decided to also show an adjustment for both execut ives base and total remuneration by TSR year n+1. (See graph 4 and 6) Therefore, a decent correlation between TSR and executives is noticeable. In particular, the total remuneration illustrates a clearer correlation and this shall be explained in more detail below. (See graph 5 and 6 for year n+1) In 2007/08 graph (6) shows a fall in TSR along with the CEOs total remuneration. This indicates that as shareholder wealth decreases, CEO is punished since her bonus decreased. In fact, in 2008 her total salary was reduced from  £1,453,000 to  £1,421,000. (WH Smith PLC, 2010) As TSR increased again in 2008/09, CEO total salary dropped even further. One can assume the inconsistent fluctuations over time may have provoked shareholders to decrease CEO compensation since a stable increase is not maintained. On the other hand, in 2008/09, graph (6) illustrates a rapid fall in total Finance Directors pay. Explaining this drop, in 2008 Alan Stewart was replaced by Robert Moorhead whom is t he current Finance director of WH Smith. One can assume that Moorheads level of experience may not have been as advance resulting in total salary reduction until earned. Nonetheless, as TSR rose in 2009, the Financial Directors total remuneration also showed a positive correlation. Graph (7) illustrates a sincere overall correlation of both executives combined to demonstrate the relationship of base and total when compared against TSR year n+1 presenting an accurate correlation. Despite the fall in managerial performance during 2005/06, WH smith has successfully improved the quality of its remuneration as both, total and base indicate a positive alignment with TSR. As TSR decreased in 2007/08 both Base and Total remuneration fell in 2008/09. Once TSR picked up again in 2008/09, Base and Total also increased the year after in 2009/10. Not only does this indicate that managerial compensation positively reflects financial performance, it also signifies that WH Smith has managed to a lign managerial performance along with shareholder interests thus minimising agency problem. However, in 2005 the company experienced turbulence in its remuneration scheme since a slight agency cost is demonstrated particularly for total remuneration. As mentioned, a large number of shareholders criticised the companys pay plan during 2004/05. One can assume the majority whom voted for better remuneration were successful since the agency cost used, resulted in a better performance in the remuneration committee for the following years. The remuneration committee are principally responsible over managerial salary. They have shareholder interest at heart and have conquered an effective strategy in controlling managerial performance as they are able to punish if interests are not met and reward when owners are satisfied with management targets. Nonetheless, if the remuneration committee are not using pay effectively to attain positive performance, shareholders have the power and cont rol to dismiss the committee and elect members whom target shareholder interest. Overall, managers who are successful in pursuing shareholder interests will be in greater demand within the labour market and thus receive higher salaries. Balance of power Shareholders Managers In conclusion, the balance of power at WH Smith lies with shareholders since they uphold the major control of hiring and firing board members whom fail to fulfil their interests. The remuneration committee are a suitable example in serving shareholder interest as managerial compensation is determined accurately on the basis of performance. However, the various conflicts of interest proposed indicate that shareholders lack the full control specified in theory. In practice, managers exerted control over shareholders as they incurred exceptional direct agency costs. This left shareholders at the expense of managers indicating an agency problem. Overall, WH Smith practices the UK Combined Code of corporate finance as managerial positions are segregated ensuring no individual has excessive power over shareholders. Todays corporate governance consists of smaller boards as WH Smith shows with 2 executives and 5 non-executives. A study on corporate governance found the average board has a five to one ratio of independents to non-independents. (Hembrock, 2010) Since WH Smith have a small ratio of executives compared to non-executives the risk of management empowering is unlikely. Financial Market Theoretically, financial markets are regarded as efficient as managers are assumed to convey information honestly and truthfully. In turn, financial markets judge the true value of the corporation, in this case through share price. Not only does WH Smith present general company information available on sources such as FTSE, Fame, annual reports and other financial databases to measure performance, its visibility slightly increased during its critical period when the companys corporate governance performance was announced through online newspaper articles (media) in 2004/05. To some extent WH Smith constitutes efficiently as its available bad news correlates with the affairs taken place during that period. However, an organisation that responds quickly to a bad situation Can culminate very quickly into a bad storm of press. (Ipranet, 2010) There is no guarantee that free available information constitutes to an efficient financial market since managers are able to control the informa tion by delaying the release of bad news. Although WH Smiths severe fall was in 2004, its first signs of share price reduction happened in 2001. The available information presenting 3 years of critical performance was only just announced in 2004/05 when share prices increased. If bad news was constantly announced during 2001-2005 the companys reputation would be severely damaged whilst jeopardising its financial implications in the long-term. Although WH Smith was reluctant to bad press in the past, today the company has managed to redeem itself and reduce its level of visibility in which encourages better performance by managers in the long-run. (Damodaran, 2006) References Baker, H. K Powell, G. E. 2005: Understanding financial management: A practical guide. UK: Blackwell Publishing. Band, D. 1992: Corporate governance: Why agency theory is not enough. European management journal, 10: pp. 453-459. BBC News (14/10/2004) WH Smith plunges into the red. Available online at: https://news.bbc.co.uk/1/hi/business/3741684.stm (Assessed: 08/03/11) BBC News (19/04/2004) Rapid evolution needed at WH Smith. Available online at: https://news.bbc.co.uk/1/hi/business/3639767.stm (Assessed: 10/03/11) Besley, S. Brigham, E. F. 2008: Essentials of managerial finance. US: Alex Von Rosenberg. Bloomberg Business week (2011): Richard Handover CBE. Available online at: https://investing.businessweek.com/businessweek/research/stocks/people/person.asp?personId=1227375ticker=AXN:USpreviousCapId=670064previousTitle=Lloyds%20Banking%20Group%20plc (Assessed: 12/03/11) Damodaran A. (2006): Applied Corporate Finance: A Users Manual. New York: John Wiley Sons, Ltd. Eakins, S. 1993: Institutional Investor Support of Managers: An Investigation of Tender Offers. Quarterly Journal of Business and Economics, 32: pp. 75-84. Economist (03/05/2001): The spread of share ownership will affect company management too. Available online at: https://www.economist.com/node/594359?story_id=E1_VJQPVJ (Accessed 26/03/11) European Central Bank (2008): Cross-border Bank mergers and acquisitions and institutional investors. Available online at: www.ecb.int/pub/pdf/other/pp67-80_mb200810en.pdf (Assessed: 18/03/11) Fame (05/03/2011): WH Smith PLC. Available online at: https://fame2.bvdep.com.ezproxy.lib.le.ac.uk/version-201138/Report.serv?seqnr=0context=D1JK6C8P929OG7W_cid=57 (Assessed: 05/03/11) Gillette, A. B., Noe, T. H. Rebello, M. J. 2008: Board structures around the world: An experimental investigation. Review of finance. 12: pp. 93-140. Hembrock, J. (16/11/2010): How corporate governance changed from 1986 to 2010. Available online at: https://www.businessweek.com/managing/content/nov2010/ca2010118_316346.htm (Assessed: 28/03/11) Hillier D., Ross, S. A., Westerfield, R., Jaffe, J. Jor dan, B. 2010: Corporate Finance. New York: McGraw-Hill Education. Independent (04/01/2003) Pension funds urged to oppose re-election of WH Smith chief. Available online at: https://www.independent.co.uk/news/business/news/pension-funds-urged-to-oppose-reelection-of-wh-smith-chief-608954.html (Assessed: 12/03/11) Independent (30/01/2004): One-third of WH Smith investors revolt over pay. Available online at: https://www.independent.co.uk/news/business/news/onethird-of-wh-smith-investors-revolt-over-pay-574996.html (Assessed: 13/03/11) Kostyuk, A. N., Hecker, A., Fuss, R., Markham, P. L. Balachandran, B. (N. D) Shareholders and stakeholders. Available online at: https://www.virtusinterpress.org/additional_files/book_corp_govern/sample_chapter03.pdf (Assessed: 20/03/11) Leech, D. (2002) Shareholder voting power and ownership control of companies. pp: 2-42. Available online at: https://www.warwick.ac.uk/~ecrac/LeechHomoOec.pdf (Assessed: 07/03/11) Mallin, C 20 10: Corporate Governance. Oxford. Oxford University Press. Monks, R and Minow, N. 2008: Corporate Governance. West Sussex.: John Wiley Sons Ltd. Telegraph (30/06/2003) Taylor to join Handover at WH Smith exit. Available online at: https://www.telegraph.co.uk/finance/2856404/Taylor-to-join-Handover-at-WH-Smith-exit.html (Assessed: 09/03/11) Telegraph (26/01/2004) WH Smith Chairman may step down early. Available online at: https://www.telegraph.co.uk/finance/2875079/WH-Smith-chairman-may-step-down-early.html (Assessed: 11/03/11) This is money (24/11/2004) New boss set for WH Smith challenge. Available online at: https://www.thisismoney.co.uk/news/article.html?in_article_id=395845in_page_id=2 (Assessed: 10/03/11) This is money (07/06/2010) How WH Smith became our least-favourite store. Available online at: https://www.thisismoney.co.uk/markets/article.html?in_article_id=505817in_page_id=3 (Assessed: 14/03/11) WH Smith PLC (2010): History of WH Smith. Avai lable online at: https://www.whsmithplc.co.uk/about_whsmith/history_of_whsmith/ (Assessed: 27/02/11) WH Smith PLC (2010): Annual report and accounts 2010. Available online at: https://www.whsmithplc.co.uk/docs/reports/WHS_AR_2010_Final1.pdf (Assessed: 25/02/11) WH Smith PLC (2011): Notice of WH Smith PLC: Annual general meeting. Available online at: https://www.whsmithplc.co.uk/docs/WHS_NOM_8pg_FAW_Final3%281%29.pdf (Assessed: 06/03/11)