McBride Financial Services Essay Example | Topics and Well Written Essays - 2000 words

McBride Financial Services - Essay Example In short, the problems of the firm are integral since the management organ of the firm has adopted customs that are not in line with the international standards of corporate governance. The firm is experiencing many challenges at the start up stage since it is a private and small firm. Unlike many brokerage firms, the management of the institution has a limited experience in the brokerage industry, and this can result to a downfall of the industry. The chief executive officer is one of the key challenges to the achievement of the firm since he is the owner of the firm and, as a result, there will be a tendency of putting his own interests first. McBride being the chief executive officer and the chairman of the board will have a significant influence on the decision made by the board of directors as well as the management team (Fayol, 1949). This is because being the head of the two organs he can refuse a decision that is not favourable to his own interest. Commercial analysts have cr iticized the organization for its inability to comply with the rules of investment and borrowing funds from beltway investment. Beltway investment on the other hand, 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 will 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 on their own style. It emphasizes on 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 dec ision on the directors and the management