Read Case: "CEO Compensation" (pages 254-255 in the Greer text), then answer all five questions on pages 255-256.
Problem 1. Explain the potential adverse impacts on strategy implementation when the CEOs of companies receive extremely high compensation.
Problem 2. Discuss the merits of the various recommendations for solutions to the problem of extremely high CEO compensation.
Problem 3. What non-regulatory pressures are most likely to bring excessively high CEO salaries more in line with realistic levels?
Problem 4. Evaluate the argument that pay for performance justifies the level of compensation paid to the CEOs noted in the example.
Problem 5. Evaluate the argument that the problem of excessive CEO compensation should not addresses through legislation.