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Executive Pay Research Paper

662 Words3 Pages

The CEO-employee pay gap is a polarizing topic. High CEO salaries help corporations remain competitive and attract top talent to run their organizations. After all, CEO is a “terminal” position. Most people aim to retire from a CEO position and want to go out on top with a big paycheck; former CEOs seldom go on to hold that title at multiple companies. High salaries can also be viewed as excessive by those inside and outside the company and a point of criticism, especially when some employees live paycheck to paycheck. The question remains though – do high CEO salaries help or harm a company and its employee morale? For industries constantly in the spotlight whenever minimum wage discussions arise such as retail and fast food, the difference is staggering and can have a negative impact. For fast food workers, the pay gap is front of mind. Last year, for example, the CEO of McDonald’s got a performance bonus of $23 million. Meanwhile, the average employee makes $7.25 an hour. For those in the fast food industry working full time and still in need of financial assistance, it is particularly demoralizing to see a CEO walking away with such a big payout. The situation is exacerbated when the company isn’t performing well and the CEO still benefits. …show more content…

Starbucks is one company that has figured out how to strike the right balance with its employees. While some of its employees are paid minimum wage, they lessen the sting of a gap by offering non-cash incentives, such as tuition assistance, benefits, and paid vacation time to improve employee satisfaction. Even though employees aren’t paid high salaries, they feel valued and are happy to be there. The same can be said of Whole Foods. The grocery chain makes an effort to maintain a living wage for all its employees. Employees enjoy non-cash incentives such as maternity leave, work-life balance and

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With the recent changes in minimum wage, Morning Joe must reevaluate the base pay compensation of Baristas, Shift Leads, Store Managers and District Managers. Upon the conclusion of local and national industry competitors it is proposed that Morning Joe adopt the following changes: Baristas will receive a pay increase of 33.33% which raises their wage from $8.25/ hour to $11.00/hour Shift Leads will receive a annual bonus of 5% Store Managers will receive a annual bonus of 3% District Managers will receive a annual bonus of 3% In total, these changes in base pay will increase Morning Joe’s compensation cost by 6.48%. Additionally, the proposed changes in compensation are aligned with Morning Joe’s philosophy that Baristas are the heart of the company and deserve to be treated as such.

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However, in 2000, the average CEO made 531 times that of an hourly worker – that’s inexcusable. Congress can push for greater public awareness toward putting caps on CEO packages and closing the gap between CEOs and the employees. The overall effect would move our culture toward a fair and balance society instead of the haves and the have

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Many employers have developed ways to give incentives

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While the federal minimum wage is currently $7.25 per hour, on Tax Day, many McDonald’s employees protested against their low wages; they argue that the minimum wage should be $15 per hour. Earlier this month, McDonald has officially announced that it will raise the wage by only $1 per hour for company-owned franchise. Also, independently operated franchises are even excluded from this pay raise because their wages are determined by the franchisee. That is, only about 10 percent of McDonald’s workers get “real” benefits from this raise. Consequently, many workers argue that the raises were not enough to make them get out of poverty.

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In 2014, thousands of fast food workers across the nation put pressure on the government to pass legislation to increase the federal minimum wage to $15 per hour. Making an average of $7 hourly, most were far below the poverty line and complained about their inability to maintain basic life necessities despite working a considerable amount of hours each week. Many felt the multi-billion dollar corporations they worked for and the CEO’s who were in charge were exploiting them while pocketing the majority of the wealth they helped to create. However, some business owners and outside employees, mostly those who worked in white-collar jobs, disagreed stating that these workers did not deserve a higher wage for a job that required no degree or special

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While the management team continuously reminds employees of how lucky they are to be paid so well, they are simply paying the industry average. Dan Pink said, " Pay enough to people so, they do not think about money, but they think about work." While this bit of advice rings true for most work environments, even if a job doesn’t offer the highest pay and doesn’t use incentives surrounding money, there is often a lot to be said for an environment that is inviting, positive, and communicative. Management needs to implement a system where they are openly sharing achievements and kudos to different employees within the company, rather than only focusing on what the employees are doing wrong. They could have these kinds of positive interactions at

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But the people working at fast food chains and gas stations are still making minimum wage. “More than 400,000 workers make less than $15 an hour” (Lanzinger). The people who make minimum wage need to make more. The more money they make the more money they can spend for groceries and other stuff that is required for

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Board of directors are tasked with determining the compensation package for their CEO. Most boards link CEO compensation to current performance and future results that impact the fixed pay, variable pay and prerequisites. The compensation package is designed to drive achievement of financial and strategic goals while aligning with the interests of the shareholders. A review of four CEOs and their compensations will aid in drawing parallels and disparities in CEO compensation methods, especially the alignment and misalignment of incentives in similar companies. The compensation of Richard Simons (Hardinge Inc.), Richard Holder (NN Inc.), Jonathan Painter (Kadant Inc.), and Michael Doar (Hurco Inc.) in 2014 will be used for cross comparison and

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Taxpayers may save money if the minimum wage increases because fewer low-paid workers may need to rely on government support programs (Maverick, 2024). It has been noted that workers' morale may rise in response to having a more significant pay rate. It can be difficult for business owners to motivate their employees, especially when those workers are underpaid and feel that their efforts will not lift them out of poverty. By improving their quality of life and raising their morale, employees can have more concrete advantages like lower expenses for hiring and training new hires and higher employee retention rates. Longer-serving employees could take advantage of better opportunities for professional development and save money on moving costs (Maverick,

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I know that things are quite different in Hollywood and countless hard-working Americans are not dealing with that volume of money. However, this example perfectly ties into an issue that has plagued women in multiple countries from the second they entered the workforce: the gender wage gap. For if women in 2018 can work, receive the same education as men, and hold high tier positions such as CEO, how does it make sense that they are still making less than men for the same positions? It is a fact that some people do not believe in the gender wage gap and if they do believe in it, they believe that the gap is justifiable based on certain factors.

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Those who enjoy the low prices of their favorite fast food dollar menu items would obviously be disappointed if these prices went up. In contrast, a study conducted by economists Michael Reich, Arindrajit Dube and T. William Lester demonstrated “that a ten percent increase in the minimum wage would increase corporate costs by only one percent”(Satran par. 6). The fast food companies would not allow the prices of beloved products to rise too much because they would lose business. Even if the minimum wage were increased, it is doubtful that restaurants would swell the prices to unthinkable

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The FFC prides itself on paying employees an hourly rate above the National Living Wage. When it comes to intrinsic rewards, employees are regularly thanked for a job well done. Additional perks include flexible working opportunities such as flexible working hours and shift swapping as well as a non-contributory pension and an additional 2 days’ holiday and lifetime beneficiary status for employees with over 5 years’ service. The FFC understands that different employee groups will have different needs when it comes to reward e.g. young employees may prefer more holiday and pay whereas employees with children may prefer childcare vouchers and flexible working; and therefore takes a balanced mix of intrinsic and extrinsic

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Are CEO’s today really worth that much more than their comparable peers were worth just few decades ago? Is it ethical for CEOs to have higher pay? If performance and worth of good CEOs is the driving force of this huge gap in CEOs and other employees pay, why shouldn’t the other employees’ ratio alongside their CEOs also increases also? Are we saying that they are not performing? No wonder employees moral, performance and loyalty are fading away in many

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Ayemere Oiyemhonlan Professor Basile English 201 March 31, 2017 Research Paper In any job there’s a pay scale from entry level positions to managers and to the highest executives. Many people assume that we are just paid flat out based on our position; where in some cases, not all, this is very true. This paper will focus on the question “Why do executives receive such high compensation and how it affects the common worker”. In corporate America bonuses and compensation differentiate much of the working force and the compensation policy is an important factor in an organization’s success.

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For instance, the wage for a cashier is now $11.55 which is only slightly higher than the minimum wages of $11.40 in Ontario. This causes high turnover rate as a lot of staffs are working as part time and frequently quite due to the low pay. A recommendation for Walmart is to develop a formal human resource program and fair performance review process to manage employee compensation. When employees perform at a higher level, their pay rate may be justified according to their performance appraisals. Providing faster promotions is another way to keep people motivated and improve their performance.

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