Inflated Executive Salaries
In the following paper the researcher will analyze the reasons why companies feel CEOs are justified to have inflated salaries. The researcher will first outline the issue of executive inflated salaries, then sum up the arguments of the opposition. In the end the researcher will present his/her own arguments and finally conclude with what he/she gathered through the research.
With the emergent of technological-based environment, companies have mushroomed in the stock market to include internet-based firms to register as corporations, equal to those brick and mortar blue chip companies. The nature of the consumer behavior along with the market behavior, force companies to reconsider their strategies. For this purpose they hire executives to assign the task of changing the direction of these companies around less remain behind in profit making. In pursuing these tactics, they inevitably increased the value of CEOs in the industries. Today CEOs are known to have one of the highest paid, at times surpassing the profit level of the shareholders. The reason behind this is based on the fact that CEOs are being valued for the skills they have and not by the profits they bring in. The issue arises whether these CEOs are justified to have such inflated salaries or not [Brinsley, July 2, 2001].
Summary of arguments
Compensation and benefits in a human resource structure usually follow that the employees should produce with accordance to their salaries. Their salary structure is then measured against the profitability of the firm. When employees do not perform in accordance to the designated profitability level, they are removed from the payroll and replaced by someone more competent. Similarly, at the executive level, compensation for the performance is based on the kind of profitability they bring...
Enron Scandal: Who was Responsible and Why? Background of Enron Scandal and Timeline of Events Key Players in Enron Scandal The Enron Scandal was the biggest accounting fraud in U.S., indeed worldwide, business history. The following paper gives a brief history of the events leading up to the scandal, a timeline for the events surrounding the uncovering of the scandal and the events following the public knowledge of the scandal. Key players in
greed in our society, its deteriorating impact on our society and ways to curtail the same. The Works Cited five sources in MLA format. Greed in Society Greed! Greed! Greed! This is all that we observe around us in business dealings, in institutions including those that are established to impart quality education, in movies, in television shows, in every part of the corporate world as well as in day-to-day routine work.
). On the other hand, this asset liability matching [provoked] a move into bonds which, coupled with the low-interest rate environment, [meant] that pension funds [were] are also been forced to think harder about how to generate return." (6). As a result, many pension funds, including many of those of non-profit companies that in the form of Defined Benefit plans, moved away from holding traditional equity portfolios. As Stewart explains, "[r]ather than
" While there are factors like peer pressure and authority that come into play, some research claims to have isolated significant features of an individual's character that make them more likely to commit acts of fraud, bribery and falsification in the corporate context (27, 2009). For example, those people with "high levels of ambition were more likely to transgress moral codes, competitively stab colleagues in the back and make dubious
The proliferation of the internet has threatened to undermine the capacity of real estate agents and brokers to control the dissemination of information in the real estate market. Prior to the inception of the internet and the adoption of its use by the real estate industry, details relative to real property was largely within the exclusive province of the agents and brokers. Multiple listing services, property transfer information, existing
Com industry crash after the boom This is a paper examining some of the factors that caused the dot-com crash Many believe the root cause of the dot-com crash was over valuation of stock prices relative to the actual underlying value of the companies themselves. Stocks of Internet companies traded at Price-Earning ratios of higher then 30, buoyed by a speculative bubble. When reality set in for investors many realized that
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now