Controversy Over The Use Of Executive Compensation For Ceos

In basic terms, executive compensation is the amount paid to the executives in a company, and it can include salary, bonuses, cash awards, stock awards, and stock options. In today’s public debate, executive compensation is important because of a perceived excess of compensation for CEOs. Many employees find that CEOs are paid in excess of their performance, while the employees’ wages are stagnant. Following this train of thought, executive compensation relates to a company’s values by how it is reflective of the company’s performance. Many people value fairness and equality, so people would expect executive compensation to follow along with how the company is performing. When the company is doing well, it only seems fair that executive compensation to be decent amount, and then vice versa. Say on Pay is a technique in which

The other parties, CEOs, Board of Directors, outside consultants, individual shareholders, and institutional shareholders, would also want some type of monetary benefit. CEOs most likely want a high executive compensation because they feel their role is crucial to the standing of the company. Shareholders want high dividends because they had to invest into the company to buy stock, so they expect a return on their money. Similarly, institutional shareholders want good dividends because they expect a return on their investment. Outside consultants would want a fair payment for their work because they offered up their consulting skills to the company, so if the company is performing well, they expect a high payment. Finally, the board of directors will also want a good salary for its work because it have made the most essential and strategic decisions for the company. In most cases, each party wants to profit off of the company, but for different