The rising rate of executive salaries
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Introduction: The rising rate of executive salaries increases is unethical in light of problems facing American business including the threat of global competition. Among the problems is the fact that executives are getting wealthy and receiving huge compensation packages while jobs are being eliminated by automation or my moving operations offshore. Another reason many executive compensation plans are unethical, is that they are fundamentally unfair. Specifically, it is not uncommon for a CEO of a publicly traded company to earn 200 to 300 times what the average employee in their company earns in a year. Another ethical problem is the fact that many compensation demands by CEOs are essentially rubber stamped by the Board of Director's compensation committee. It is also both ill advised and unethical to pay CEOs without respect to the financial performance of the company, which suggests that far more compensation to senior executives should be variable compensation and much less should be fixed compensation.According to an article written by Jason Gabrielli and published in Business Insight (online), the term greed evokes images of ruthless corporate executives plundering companies and ruining lives to support a lifestyle marked by excess. However, applying this label to all corporate executives is not accurate despite the fact that corporate corruption has been front page news ever since well known companies including Global Crossing, Enron, WorldCom and Adelphia fil
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Accept the idea that the subjective nature of CEO performance evaluation implies the need for a certain number of members of the Board who are actually independent (Failing the "Acid Test", 2004).
According to an article in the Commentary section of the Christian Science Monitor (online), several large companies have undertaken some admirable reforms. In December, Delta Airlines agreed to submit executive severance packages to shareholders for approval if the packages exceed a certain limit. According to the article, there is nothing wrong with generously rewarding corporate executives for a job well done, however the U.S. Congress is not in a position to judge what constitutes excessive or overly generous compensation. The article emphasizes the need for stockholders to play a watchdog role in corporate compensation (Commentary, 2004).
According to a policy statement on executive compensation published on the TIAA-CREF website, ultimately a corporation's Board of Directors is responsible for ensuring that a compensation program is in place which will attract, retain and motivate a strong senior management team. TIAA-CREF believes that aligning the rewards of senior executives with those of shareholders will enhance the
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Some common words found in the essay are:
Board Directors, According Gabrielli, Zingheim Schuster, According Citizen, Enron WorldCom, , Boards Directors, Liberman CEOs, Cap CEO's, Standards Board, executive compensation, stock options, compensation plans, senior executives, times average, financial performance, retrieved feb, corporate executives, short term, according article, feb 17 2005, times average employee, excessive executive compensation, retrieved feb 17, jakobson casison 2004,
Approximate Word count = 2691
Approximate Pages = 11 (250 words per page)
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