Discussion question: Top Risks in 2017
Review the study "CEO's Vastly Overpaid" in the SHRM website at https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/ceos-overpaid.aspx (Links to an external site.) Last year the CEO of CBS television network received $56 million in compensation. It begs the question of are executives paid too much or are they worth it since they run such large companies and the board of directors support them. Review chapter 10 on Corporate Governance for a perspective on this. Write a one page double spaced, Times New Roman, 12 point font.
Consider the following. Do you think these pay levels are used for incentives to increase the value of the firm to match shareholder expectations? Large levels of compensation often is in the form of stock options resulting from rising stock prices - does that matter? If the company experiences losses during the year, how should that affect CEO compensation?