CEO Compensation


CEO Compensation
Compensation for executives has become a lightning rod issue, particularly as CEOs are paid quite well in times when their company might not be doing very well. Keep in mind that we typically only see news articles on CEOs from public agencies or publicly traded companies.

There are several approaches to CEO compensation:
• Executive salaries bear a consistent relative relationship to subordinates’ pay.
• Value of CEO should correspond to some measure of organizational success.
• Compensation should ensure that executives have the best interests of stockholders during decision making.
Please review Exhibit 14.2 on page 481. Arguably, part of the reason for excessive CEO compensation is a result of this shift in base and variable pay.

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Please answer the following questions:
1.Recognizing that CEO compensation has been denounced in recent years, identify and explain the good features of this new balance of base to variable pay?
2.Suggest measures to avoid the negative outcomes?

Please write the paper between 450-600 words in length.For these papers I don’t need abstract, introductions or conclusion. Please answer the question precisely.