I need help with this assignment please Are U.S. Executives Overpaid? An increas
ID: 355699 • Letter: I
Question
I need help with this assignment please
Are U.S. Executives Overpaid? An increasing number of critics are demanding that no executive should receive a total compensation of $100 million or more in one year. Based on a review of an article (quote your source and provide a brief explanation of that article), what is your position on the ethics of a business leader receiving so much compensation? Based on the continued investigation of various companies compensation bonuses, what do you feel about executives or employees who continue to receive large salaries, despite their organization's poor performance or past government bailouts? Support your response by first providing us with a brief summary of the article you read on this topic, followed by your tactful opinion. Provide us with the source of your article. e)Explanation / Answer
Hi,
Thanks for the question.
https://www.theguardian.com/business/2013/oct/22/top-earning-ceos-100m-paychecks-record
This article talks about the salary of top two executives of US who took home more than billion dollar paycheck for the year. Different industry people and different analyst have different opinion on this. Some are considering as a shift and change of paradigm in the history of US business environment while some are looking at this as a non necessary thing and a waste of company resources.
Other thing to consider over here is that the cash benefits of the top executives are not that much great instead they are earning money because they are having restricted stocks of the company. The implication of this is that if the company is doing good, they they are taking home a hefty amount but if the company is performing bad, then they also take a hit for the poor performance.
In my opinion, that is completely justified. For eg: If Mark Juckerberg is taking home a billion dollar paycheck, then that is because he created Facebook from scratch and he had a vision. Also, most of his earnings are through stocks which means he will also be taking a hit for company's poor performance.