Directors' Dilemma 10: Earning Significant Profits

Case study – directors’ dilemma: earning significant profits

In this case study, you are a non-executive director in a financial services company. The company has experienced great success and has earned significant profits through lending assets in unit-linked funds to borrowers, in return for substantial fees to the company. The fees are so significant that they more than compensate the company for any credit risks being taken.