Benefits Of A Executive Compensation - 1390 Words

Introduction Over a long period of time, many shareholders in various companies have been complaining about the high executive compensation in the companies. They believe that such executives are draining the resources of such companies at the expense of the shareholders. Despite the non-binding votes from the shareholders against high levels of executive pay, many companies have given a deaf ear to them. Reduction of executive compensation has been a major challenge to many companies. There are various impediments in effecting a reduction in executive compensation. Hiring and retaining top-caliber executives. In the modern cut-throat competition business world, companies are looking for the best executives, who can lead the company into success. To achieve such an objective, companies have to offer higher executive compensation. In addition, so as to retain the best executives who are still working for the company, there is need to maintain a higher level of executive pay, otherwise such top talent will be lured away by other companies. This may have the adverse effects of leading the company into poor performance, and consequently, failure. Therefore, it is paramount that executive compensation is maintained at its best for the overall good of the company ((Hartzell Starks, 2003). Reinforcement of succession planning process. It is important that an organization prepares top-notch executives to take over leadership of the company in the future. Without 2 proper planningShow MoreRelatedA Brief Note On Executive Compensation And Non Monetary Benefits1444 Words   |  6 PagesThe term compensation refers to all forms of financial returns and tangible benefits that employees receive in exchange for their time, talents, efforts, performance, and results (Bernardin, 2013). Executive compensation is defined as the financial payments and non-monetary benefits provided to high level management in exchange for their work on behalf of an organization. The types of employees that are typically paid with executive compensation packages include corporate presidents, chief executiveRead MoreAn Evaluation Of A Structured Executive Compensation Package1612 Words   |  7 Pagessuitably structured executive compensation package is to engage, retain, and motivate CEOs and senior management. When it comes to attracting the best senior talent, having the right compensation strategy can make the difference between success and failure. Knowing what st rategies work, and those that don’t, is a vital part of any senior recruitment strategy. The objective of this survey is to provide insights into the remuneration and benefits structure and compare the existing compensation package forRead MoreExecutive Compensation: the Ethical and Impact Challenge1629 Words   |  7 PagesExecutive Compensation: The Ethical and Impact Challenge                              Executive Compensation: The Ethical and Impact Challenge Executive compensation is defined as the reward given to corporate executive employees for their job performance. Corporate executive employees are the higher echelon company employees and may include the chief financial officersRead MoreU.s. Securities And Exchange Commission1660 Words   |  7 Pagesdebates over wages and compensation have been a growing topic of concern. Many people feel that they are entitled to earn more than they currently are. The comparison of executive wages and worker wages has created a backlash from the American public due to the extreme differences in pay. 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The issues addressed in this compensation plan is how to protect shareholders’Read MoreWhat Are the Advantages and Disadvantages of High Levels of Executive Compensation?1179 Words   |  5 PagesN8486666 Kasha – Class 07 Executives are often seen as the most crucial person in the companies. Their daily tasks involve both multifarious management and challenging projects in order to promote companies growth and achieve business goals in the competitive business environment. Therefore, most corporations tend to provide decent wages and welfare to executives for their great contribution and irreplaceable value. Although the right executives deserve high compensation, some people suspect thatRead MoreCorporate Social Responsibility And Executive Compensation With Firm Performance1410 Words   |  6 PagesCorporate Social Responsibility and Executive Compensation with Firm Performance Introduction The last two decades has seen a significant increase in firm’s investment on corporate social responsibilities (CSR). Jo and Harjoto (2011) propose that a social responsible firm cares about how its operating affects stakeholders, community and environment in the ways that is beyond the legal requirement. The increasing importance of CSR has raised many debates on its influence on firm’s performance, shareholderRead MoreExecutive Compensation655 Words   |  3 PagesExecutive Pay Strategic Issues and Problems: As a result of the current economic crises, many companies are experiencing massive financial losses. These companies are reducing salaries and cutting peoples’ jobs while executives are maintaining high compensations. Using tax payer’s money, the US Government is assisting these financially struggling companies through the Troubled Asset Relief Program (TARP). TARP was created to assist these companies to ultimately allow them to survive and preventRead MoreEthics and Social Responsibility Essay1738 Words   |  7 Pagesthe society. UTILITARIANISM Utilitarianism places high emphasis on the consequences and outcomes of one’s action. It is premised on the general principle that an action is right and ought to be performed insofar as it leads to overall happiness or benefits, as opposed to pains or costs (Chan Shenoy, 2010). However, many businesses have a sole objective of maximizing its profits and shareholder value. While focusing on the interest of its internal stakeholders, the interest of its external stakeholdersRead MoreEnormouse Wealth of CEOs1194 Words   |  5 PagesMark Zuckerburg, the creator of Facebook, made in one year. Executive compensation is bonuses and benefits given to CEO’s of companies on top of the base salary they are receiving. The amount, as you see, can be astronomical which will lead one to question the ethics of employee compensation programs. While it may motivate some people to perform better so they may increase stockholders wealth, it may also have an adverse effect on the execut ive which will have an effect on the entire company as was the