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Executive Compensation And The Sarbanes-Oxley Act Essay

966 Words4 Pages

Running head: EXECUTIVE COMPENSATION AND THE SARBANES-OXLEY ACT 1 EXECUTIVE COMPENSATION AND THE SARBANES-OXLEY ACT 6

Executive Compensation and the Sarbanes-Oxley Act
Hieu Le
Columbia Southern University

Executive Compensation and the Sarbanes-Oxley Act Executive compensation is the financial package that an organization rewards to their key leader based on his/her skills, experience, talent, and contributions to the firm. Additionally, the executive compensation is commonly divided into five different categories including annual salary, performance bonuses, stock options, contingent financial incentives, and future vested equity. Although executive compensation motivates leaders to maximize …show more content…

According to Mcgregor (2013), it is impossible to determine to a certain ratio CEOs to workers, whether 25 to 1, 50 to 1, or 100 to 1, rather than applying a specific amount based on firm?s size and a CEO?s performance. Hence, the best solution for the U.S government to make a right ratio CEOs salary to worker is capped at the particular level in order to prevent the excessive amount of money to pay to executives (Mcgregor, …show more content…

B., Schipani, C. A., & Seyhun, H. N. (2016). Ending executive manipulations of incentive compensation. Journal of Corporation Law, 42(2), 277-326. Retrieved from Business Source Complete database.
Bumgardner, L., (2003). Reforming Corporate America: How does the Sarbanes-Oxley
Act impact American business? Retrieved from http://gbr.pepperdine.edu/2010/08/reforming-corporate-america/
Kuratcryk, M., (2007). Ethics of Executive Compensation. Retrieved from https://uwaterloo.ca/centre-for-accounting-ethics/sites/ca.centre-for-accounting-ethics/files/uploads/files/mkuratczyk-estey2007.pdf
Mcgregor, J., (2013). What?s the right ratio for CEO-to-worker pay? Retrieved from https://www.washingtonpost.com/news/on-leadership/wp/2013/09/19/whats-the-right-ratio-for-ceo-to-worker-pay/?utm_term=.39eba5d9f1a4
Mullaney, T., (2015). Why corporate CEO pay is so high, and going higher. Retrieved
from

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