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Are the high salaries for CEOs & top executives warrant? Are they fairly? The first part of the question is whether the CEOs payment is really high. accord to The Wall Street Journal, in 2006, the CEO to average worker pay ratio was 11 to 1 in Japan, 15 to 1 in France, 20 to 1 in Canada, 21 to 1 in S extincth Africa, and 22 to 1 in Britain. The ratio of average CEO compensation at declamatory U.S. companies to the average production workers pay was roughly 40 to 1 in 1980, according to The Economist. The magazine reported that the ratio had risen to 85 to 1 by 1990, and then soared to about 400 to 1 by 2003. (Source- forbes,2008) So one locoweed safely (social comparison!) assume that the CEOs salaries in US is in like manner high compared to other developed countries. No doubt, it has became an election give away in America with Obama ( professorship in waiting) high on magniloquence in election time. Even champion of free market, President George Bush has criticised the high salaries of CEOs. An interesting event unfolding in USA now is the impending bankruptcy of major car giants. General Motors Corp. and Chrysler LLC have already warned that they are running out of cash and face bankruptcy without some form of assistance. crosswalk Motor Co.

, which is in somewhat better shape financially, has been pursuance access to a line of credit. Can you guess what was the salary of the top management of these companies? Rick Wagoner, General Motors received $14.4 meg in compensation in 2007, including a salary of $1.56 million. salary for Alan Mulally, Ford in 2007 was $21.7 million, with a salary of $2 million. Is it justified! Some say CEO compensation is justified because CEOs ontogeny a stock price which, in turn, increases shareholder wealth. hire for CEOs is indicative of their level of performance as long as pay is based upon stock performance. The decisive argument is about wealth maximisation. But the above mentioned top CEOs did realise wealth for their... If you want to get a full essay, assign it on our website: Ordercustompaper.com

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