CEO Compensation

Paper Summary:

The paper reveals the salaries of CEOs Merrill Lynch and Apple and discusses the perspective that inflated wages are an insurance against poor performance and poor managerial decisions by these top executives. The paper also considers the argument that CEOs should make money just as sports personalities and actors earn exorbitant amounts. The paper then looks at how CEO pay has risen much faster than that of the common worker and notes the arguments against this growing class disparity. The paper concludes that from a public standpoint, there is little justification to allow CEOs to make excessive salaries.

Outline:
How Much Do CEOs Make?
What Do They Do to Earn it?
Conclusion

From the Paper:

"CEO compensation represents a hot button topic among many of America's middle to lower class. Compared to the average worker, the amount of compensation paid to CEOs makes the blood of many boil. In addition to their hefty pay, CEOs are paid in non-monetary compensation and perks, allowing them to accumulate tremendous wealth. Some feel that CEOs are overpaid for a job that entails sitting behind a desk while others feel that the compensation that they receive is fair, considering the responsibility and stress that CEOs are under. This research will examine both sides of the argument regarding whether CEOs are paid what they are worth, or if they are overpaid."

Sample of Sources Used:

• Bebchuk, L. & Fried, J. (2004). Pay Without Performance: The Unfulfilled Promiseof Executive Compensation. Harvard University Press, Retrieved August 2 from http://www.pay-without-performance.com/pdfs/02_Robert-Kennedy_E&E.pdf
• Donaldson, J. & Danthine, J-P. (2008). Executive compensation: The fragile foundations of stock options. Vox EU. 2 August 2008. Retrieved August 3, 2008 from http://www.voxeu.org/index.php?q=node/1500
• Kellerman, B. (2008). Chief Executive Pay Needs to Get Real. Harvard Business Publishing. 13 May 2008. Retrieved August 2, 20008 from http://discussionleader.hbsp.com/kellerman/2008/05/the_income_gap_between_leaders_2 .html
• Nguyen, V. & Russell, K. (2008). Executive Pay: The Bottom Line for Those at the Top. New York Times. April 5, 2008. Retrieved August 2, 2008 from http://www.nytimes.com/interactive/2008/04/05/business/20080405_EXECCOMP_GRA PHIC.html
• Vanderkam, L. (2008). Cracking the CEO Pay Puzzle. The American. March/April Issue. Retrieved August 1, 2008 from http://www.american.com/archive/2008/march-april- magazine-contents/cracking-the-ceo-pay-puzzle.

More papers on CEO Compensation:

• Argumentative Essay # 103383 : "Excessive CEO Compensation"
• Argumentative Essay # 55320 : "CEO Compensation"
• Analytical Essay # 142311 : "CEO Compensation"
• Research Paper # 107627 : "Perks and Executive Compensation"

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