Critical evaluation of energy relations between Russian Far East and Dissertation

Critical evaluation of energy relations between Russian Far East and Asia (China & Japan) post 2000 - Dissertation Example During the period of the 1990s the government of the country did not directly control the large number of oil resources and industries in Russia. Rather big business tycoons who maintained a strong relation with the Russian Government officials controlled these industries. The Russian government during the period ranging from 1995 to 2000 endeavored to take decisive steps to bring about reforms in the country’s energy policies, which failed to get fulfilled owing to poor performances of the Russian economy. However the gradual revival of the economy after the 1999 period led the Russian government formulate an energy strategy till the 2020 period. This strategy aims at augmenting the supply of energy to meet the global demand. Further, the strategy aims at reducing the dependence of natural gas from around 50 percent during the 1990 period to around 42 percent during 2020. Rather the strategy focused on increasing the share of coal in energy generation from 16 percent in 1998 to around 23 percent during 2020. These policy directions along with focus on nuclear energy generation are expected to draw huge investments of around $700 billion by the 2020 period (Woehrel, 2009, pp.1-2; Russian Energy Survey, 2002, p.23). Russia’s Energy Policy towards China and Japan post 2000. In the field of energy development, the two countries Russia and China started their cooperation from the period of the late 1950s with Russia rendering technological knowhow for developing the oil industry in China. With the emergence of the 1990 period several government and energy agencies in both countries figured the laying down of gas pipelines between themselves as a feasible idea. With the signing of the ‘Treaty of Friendship’ during 2001 the expectation of energy collaboration between Russia and China gained further ground. The directions took shape under Vladimir Putin’s leadership after the 2001 period with the decision taken by the two countries to construct a joint pipe line for transmitting oil. Exports of oil by Russia to China augmented through different routes from 3 million in 2002 to 16 million during the period of 2006. This clearly reflects the growing interest of Russia on exporting oil to China which gained growth after the 2005 period. The construction period for the gas pipeline laid at 2008 failed owing to failure of price agreements between Russia and China. During 2006, Putin further announced the extension of gas resources to China along the Serbian border. (Eder, Speed & Korzhubaev, 2009,pp.219-2224, 240-242). The energy policy of the Putin government became an area of higher influence by the Japanese diplomats in trying to get the best out of it. The Japanese diplomats desired the map for the oil pipeline to be set from Angarsk to Nakhodka which would be beneficial to the Japanese region. Japan considered the above move a strategic importance for it would reduce their dependence on oil resources of the Midd le East and also strengthen its relationship with Moscow (Amalia, 2006.p.3, 7). Trend of Energy Uses in China and Japan The advent of China in the World Trade Organization augmented the country’s use of energy resources, which gained growth at the rate of 71.5 percent during the period ranging from 2001 to 2006. The region of China during the period of 2003 consumed around 31 percent of the total coal energy in the world. Further, China accounted for 7.6 percent of the global oil consumption and

Executive Compensation and Employee Benefits Term Paper

Executive Compensation and Employee Benefits - Term Paper Example A company with a number of products, clear vision and unique ideas stands to lure the most competent candidates in each and every level but to maintain this momentum of better performance, it is imperative that the top executive level secures the best talent. A compensation package which is attractive to ensure these talents are maintained at the top management level of the company since they enjoy significant negotiating power and as such additional incentives up and above the compensation package can be impacting in luring an executive to join an organization. Challenging and unique opportunities do sway employees and thus in addition to an appealing compensation package, employee benefits have been applied so as to supplement it. Employee benefits has been very helpful in enhancing economic security of the employees thus curtailing labor turnover, increasing employees loyalty and improving productivity. Compensation is any kind of remuneration that is received by a person in return for his/her performance of the company's or organizational tasks. There are four common methods of compensation: performance related pay (PRP) such as commission, bonus, time rate and piece rate; fixed basic pay; non-economic benefits such as house, car etc and finally ownership benefits where employees are awarded shares (Reid, 2004). Several factors influence the wage and the salary structure, these include: pressure from trade union, lowest wage rates, existing market rates, supply and demand for a particular job, the employee's qualification and the ability of the organization to pay. Compensation in the form of wages is normally given to a worker while compensation in the form of a salary is normally given to an employee. Executive compensation refers to the way senior executives for the business corporations or firms are paid. Executive compensation comprises of the basic salary, options, shares, b onuses plus additional company benefits (Bagley & Savage, 2006). Forms of Executive compensation There are a number of types of executive compensation which offers numerous performance incentives and tax benefits. They include: Stock options -Refers to the privilege sold by a buyer to a seller that gives the latter a right rather than an obligation either to call(buy) or put(sell) the stock at an agreed price on a particular date or within a specified period (Bagley & Savage, 2006). Stock options ensures the CEOs interests are kept at par with that of shareholders since their value is subject to the price of the stock remaining above the strike price/exercise price (price upon which a stock will be sold or bought upon the exercise of the option) of the option. However stock options are open to abuse through options backdating and excessive risk seeking (Lawrence, 2002). Restricted stock - These are stocks awarded to an executive but can only be sold once a specific conditions are arrived at and it carries a similar value to the stock's market price during time of the grant. Deferred compensation -This is normally applied for taxation purposes and involves postponing compensation up to a certain future date. Executive perks compensation includes travel reimbursements, private jet and extra rewards given to the executives. Retirement packages awarded to executives following their retirement from the organization; this is open to abuse as corrupt executives can attach "golden