Discuss the below:
Q: How much is too much for executive compensation? Defend your remarks.
Frist One :
Two-thirds of Americans said company CEO and top executives are paid too much, and few Americans think that they would ever step into the ranks of the highest income. According to the new poll, 66 percent of Americans said that the salary of the CEO and the company's top executives are too high, while only 18 percent think their salary is appropriate. Two percent said CEO salary is too low. And even among Americans in household income brackets highest in the poll - those who make over $100,000 a year - 65 percent agree that CEO salaries, it is too high. Most Americans think the government is doing too much to help the company paid CEO a lot. Rates 57 percent to 3 percent, most Americans in the poll said the government needs to do more to help the poor rather than helping large corporations (30 percent said it should not help anything more than another). However, by an even larger margin, 71 percent to 14 percent, most people said they think the government is actually doing more to help the poor than large corporations; so, companies must change the way they reward not only the CEO and executive director of the mid-range, but also managed institutional portfolios in hedge funds, mutual funds, and pension funds. CEO and managers should be rewarded for actions and decisions within their control, not the general volatility of the market. Wage based encouraged to rely on long term data, not profit a year. CEO leading compensation based on equity should be banned from using derivatives and hedging techniques to reduce the load other risks that go along with fair compensation, and instead that are required to keep a significant part of their equity in a time beyond their tenure.
Secound one :
In the United States the pay ratio between CEO's and unskilled workers is 354:1 whereas the ideal ratio is found to be 7:1. People realize that the pay difference is unfair, but most don't realize just how unequal it is. A study done showed that Americans believed that top executives made about 30 times more than the average worker when it is actually 350 times more. I believe that 350 times more than the bottom level paying job is wrong and that there should be a ceiling set on the percentage they are making. These individuals are making so much money they cannot spend it all. I think it should be set on a system either down-up or up-down where the level of pay is determined and moved/up down the same percentage for all employees on the company's employee levels. I believe that top level managers deserve a bonus based on the company's success, but a bonus or incentive not a paycheck. I think an internal bonus is a good idea to for the money to continue to help the business grow and for top level management to spend the money in the areas they are specialized in. If the ceiling is met for pay for CEO's in the company they have room to hire or promote more top level management.