Executive Compensation

Case Summary In 1993, Michael D. Eisner of Walt Disney fame received $203 million as executive honorarium. Although this award was inflated by Eisners exercise of stock options, numerous examples of hire in millions and tens of millions raise questions on how CEOs should be gainful. Critics departure that CEOs argon deserving of their pay. CEOs downsize companies or perform swingeingly, yet hold out to draw a substantial salary. Unlike low aim managers, it seems there is no formula for executive compensation. The disparity amid the executive pay in US and that of in some other industrialized nations is great, furthering the belief that there is no rational (?) understructure for compensation. Among sports and entertainment figures, there exists a feedback mechanism for pay ? bad performance leads to reduced earnings. Graef Crystal (c.f Boatright, 2007) argues that executives do not pose pay discrimination because directors are bad negotiators [what is the linkage in the midst of the directors being poor negotiators and the CEOs not being paid what they are worth? Even if you are writing an abstract ? the sentences mustiness convey some meaning.]. It has also been argued that monetary motivation unaccompanied will not attract the crème-de-la-crème into corporate focusing; other occupations demonstrate the provision of stronger intrinsic motivation.

In conclusion, the slip of paper against high executive compensation is simply because, without establishing pay standards for CEOs, umteen firms do not punish bad performers nor duly satisfy good performers. Ethical Issues Involved Are US executives fairly paid? Do they deserve the pay they are receiving? Is executive compensation distributed in a just way? How should executive compensation be distributed so that it is just? This report seeks to determine if US executives are deserving of their pay, and if not how should executive compensation be distributed in a just way. Stakeholder Analysis The 5 entities central to the matter of executive... If you want to get a full essay, order it on our website: Orderessay

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