CEO Compensation

Paper Summary:

This paper argues that CEO compensation does not seem to be justified by performance. It further claims that there are many moral issues, like principles of equality and democracy that are violated by exorbitant CEO compensation. It states that, ultimately, a change in CEO compensation structure may help solve some of these issues.

From the Paper:

"Perhaps one solution to this issue would be to tie CEO compensation to the compensation of employees in a corporation. For example, a CEOs salary would be set at a given amount (let's say 50X) the amount of that of an average worker in the corporation. The CEO could never exceed this 50X amount in base salary. Further, the amount of stock and stock options that the CEO owns could be tied to the amount that is owned by employees. If employees own .1% of stock on average, per employee, then the CEO could not own more than 50X that amount, or 5% of company stock. While this system still allows for generous CEO compensation, it manages to tie CEO compensation to that seen by average employees, and would prevent clearly exorbitant salaries like those of 531 times of the average employee."

More papers on CEO Compensation:

• Argumentative Essay # 103383 : "Excessive CEO Compensation"
• Analytical Essay # 142311 : "CEO Compensation"
• Research Paper # 107627 : "Perks and Executive Compensation"

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