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Profit, Dividend and Financial Compensation: Empowering Shareholders, A Proposal الربح وتوزيعات الأرباح والتعويض المالي: تمكين المساهمين ، اقتراح

In: Lectures in Islamic Economics and Finance, Selected From Wednesday Seminars-08 محاضرات في الاقتصاد والتمويل الإسلامي ، مختارة من حوارات الأربعاء - 08

Author

Listed:
  • Kaleem Alam

    (Islamic Economics Institute King Abdulaziz University, Jeddah, Saudi Arabia)

Abstract

Recent crisis and failure of some major corporation that shook the business world was inspiration for this paper. This paper proposes to link top executives and as well as the employees of the firm to the profit generated by the firm. It proposes to empower the shareholders to approve debts application of the firm and fixing the bottom most salary. Being a shareholder is being the owner of the firm and hence the shareholder must have first claim over the profit, so the paper recommends mandatory annual distribution of profit’s portion as dividend. The paper produces a chart and tables to further simplify and substantiate the idea. كانت الأزمة الأخيرة وفشل بعض الشركات الكبرى التي هزت عالم الأعمال مصدر إلهام لهذه الورقة. تقترح هذه الورقة ربط كبار المسؤولين التنفيذيين وكذلك موظفي الشركة بالأرباح الناتجة عن الشركة. يقترح تمكين المساهمين للموافقة على تطبيق ديون الشركة وتحديد الراتب الأدنى. كونك أحد المساهمين هو مالك الشركة وبالتالي يجب أن يكون للمساهم المطالبة الأولى بالربح ، لذلك توصي الورقة بالتوزيع السنوي الإلزامي لجزء الربح كأرباح. تنتج الورقة مخططًا وجداولًا لزيادة تبسيط الفكرة وإثباتها.

Suggested Citation

  • Kaleem Alam, 2013. "Profit, Dividend and Financial Compensation: Empowering Shareholders, A Proposal الربح وتوزيعات الأرباح والتعويض المالي: تمكين المساهمين ، اقتراح," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Lectures in Islamic Economics and Finance, Selected From Wednesday Seminars-08 محاضرات في الاقتصاد والتمويل الإسلامي ، مختارة من حوارات الأربعاء - 08, edition 0, chapter 18, pages 175-185, King Abdulaziz University, Islamic Economics Institute..
    • Handle: RePEc:abd:ieibch:761
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    References listed on IDEAS

    as
    1. Mr. Juan Sole & Andreas Jobst, 2012. "Operative Principles of Islamic Derivatives: Towards a Coherent Theory," IMF Working Papers 2012/063, International Monetary Fund.
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