This assignment is a basic research analysis and deconstruction submission. For
ID: 392009 • Letter: T
Question
This assignment is a basic research analysis and deconstruction submission. For executive compensation, I am referring to the ethics of the pedagogy of executive compensation. please answer in APA format with citation. Here are some questions to guide your submission :
1. Is the differential disparity in Executive Compensation justified within various organizations ?
2. How does this disparity affect the performance of the organization ?
3. What are some methods used to reduce EC?
4. What are some methods used to hold Executives accountable?
5. What is the ethical dilemma in EC? How can this/these be resolved ?
6. How do you think the ethical dilemma of EC can be avoided in the future
Explanation / Answer
1.The differential disparity in executive compensation is not justified given the fact that there compensation has been increasing unreasonably and even when company performs not that well, it does not affect their reward while workers salary increase trend is quite low and slow.
2. The performance of the organization is affected as it creates the ethical dilemma that executives are paid irrespective of their performance just because of industry trend and some unproved belief that they need to make executive happy.
3. Some of the methods to reduce EC is to reward executive on their performance basis by offering them more of stocks and other company associated benefits which only matters when company grows. Executive shall be asked to disclose their salary in order to have check over them and their performance.
Progressive tax can be levied so to make these executives pay heavily on the amount they earn. There can be cap set on the maximum wage a person can make through government policies.
4. The methods to hold executive accountable is by giving them compensation in terms of bonus and stock and based on company performance apart from company laws and local company policies.
5.The ethical dilemma in EC is that not paying well is considered as something bad in business trend to these executives while it is worst when you pay unreasonably high to executive while the employee salaries grow at or below normal rate. This creates uneasiness and down the morale of employees. This can be reduced by either keeping the parity between executive and employee salary or bringing down or putting executive salary as per their performance and company situation.
6. The ethical dilemma of EC can be avoided in the future by making sure that the executive gets rightly rewarded and there is no disparity between the pay of normal employee and executives.