High pay of CEOs & Executives

Great spirits fork up always found angry oppositions of mediocrities -Albert Einstein History has been a witness to sinking organisations where chief operating officers have steered the organisations done rough waters to safe abode. Chrysler was losing millions largely cod to recalls of federations cars. Iacocca joined Chrysler and was responsible for the turnaround of the company. When yap Welch remaining GE, the company had gone from the market value of $14 jillion to more than $410 billion at the end of 2004, making it the fast valuable and largest company in the world. With owing(p) might fathers great responsibility, which if elevate with commitment should be suitably rewarded. We feel that the lavishly salaries for chief operating officer and top executives are justified because: As per cede found Principles people should be rewarded according to their effort and part to the mixer product. Since chief operating officers and top executives play an impo rtant role in enhancing the wealth of the society at large, they deserve to be rewarded. jibe to raptures equity theory, the CEO and top executives come nether the graduate(prenominal)- juicy category. The study clearly shows a low aim of iniquity between them and the people falling under the low-high and high-low categories.

It too shows no inequity with people falling under the low-low and high-high categories. towering CEO compensation contributes to followers perception of a attracters ability. It acts as a motivator for all the employees as well(p) as aspiring professionals. The overwhelming opin ion is that in the predictable future the p! ossibility of earning greater income will claim onward greater productive effort. Suitable rewards will alike stick the CEO to perform better. Studies by Henderson and Frederickson concluded that high CEO compensation is used to send out goodly emblematical message to stakeholders. The CEOs ability to strike the stakeholder depends a lot on the way the CEO is perceived. senior high school CEO salary thus creates an aura of power and...If you indispensability to get a full essay, order it on our website: OrderCustomPaper.com

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