McBride Financial Services Governance Evaluation Essay

McBride Financial Services Governance Evaluation - Essay Example The organization is experiencing many challenges at the initial stage since it is a private and small firm. The chief executive officer, Mr. Hugh, is one of the key impediments to the accomplishment of the firm objective, since he is the proprietor of the firm and, as a result, there is a tendency of putting his own interests first. McBride being the chairman of the board and a chief executive officer will have a considerable manipulation of the decision made by the board of directors as well as the management team (Maimako, 2010). This is because being the head of the two organs he can object to a decision that is unfavorable to his own interest. Commercial analysts have criticized the organization for its inability to comply with the rules of investment and borrowing funds from beltway investment. Beltway investment emphasizes that all the firms that seek any assistance from it must comply with all the requirements of investment, failure to which the application of the assistance w ill be null and void. The management of McBride investment is willing to obey and follow all the requirements of Beltway Investments. The management strategy of beltway investment seems to have some doubtful professional standards though McBride seriously opposes the perception. Beltway investment grants firm the freedom to manage their own style. It emphasizes the universal standards of corporate governance and any equity-based compensation plans in line with the achievement of the firm’s objectives. There should be no any form of discrimination. Even though McBride is seeking to fully comply with beltway investment he insists that his decision on the directors and the management method are to be followed. He further insinuates that the firm will manage their finances in their own way to meet the firm’s objectives. McBride financial services will not entertain interference in its affairs. They think that external entities will jeopardize the firm’s operations a nd thwart the achievement of the set goals, (Tricker, 2009). Challenges of McBride financial services MacBride financial services have many challenges since it is a new firm as well as the brokerage firm. In line with corporate governance, the firm has to comply with the international standards where best practices and the formal laws are to be observed. In a nutshell, the problems of the firm are natural since the management organ of the firm has adopted practices that are not within the global standards of corporate governance. McBride financial services are faced with the problem of personnel recruitment. The organization depends on personnel appointed by McBride. These appointments are of doubtful standards since they are based on personal relationships instead of professional qualifications. The decisions to be made by the management organs are so critical and the people to be employed are supposed to be of immense integrity. This means they should undergo a thorough recruitmen t process to get the best. The policy of Mr. Hugh on appointment is that he appoints individuals who go by what he says, and does what he expects of them. This might not work well for the firm's strategic objectives. In the event that the firm experiences by the administrative problem, it will be extremely difficult for them to solve them internally. (Hirschey, & Makhija, 2004).