This website uses cookies to ensure you have the best experience. Learn more

Are Ceo's Overpaid? Essay

3107 words - 13 pages

Plato, the great philosopher, once said that no one within a community should earn more than five times the wages of an ordinary worker. Today, wherever Plato is buried, he is rolling over in his grave. In the most recent studies, it has been found that CEOs can make up to 400 times that of the lowest paid worker in their corporation (Lipman). Executive pay is a huge controversy in today's society. There is much debate throughout the media as to whether or not CEOs deserve the outrageous salaries and bonuses they receive. Both sides of the argument present very valid points. However, the reader must analyze each side and choose the one which appeals to them the most. There are numerous ...view middle of the document...

This only led to the explosion of options and other non salary bonuses.The most recent discussion regarding CEO pay has landed in Congress. In December of 2005, Barney Frank, a representative from Massachusetts introduced the Protection Against Executive Compensation Abuse Act. This bill would require shareholder approval of all CEO pay plans (Colvin). Representative Frank's proposal is causing much debate not only in Congress, but in the media world as well. Even though the topic of CEO pay has always been popular, more recently it has been one of the nation's top issues. Also, the Securities and Exchange Commission has proposed making companies provide a more detailed plan of their executive compensation plan, including salaries, differed compensation, as well as perks ("CEO Dough").One of the main questions raised when it comes to executive compensation is whether CEOs are making deals more for their own benefit than for the benefit of their shareholders. According to James P. Melican of Proxy Governance Inc., "Mergers are tarnished when it appears that managements have negotiated lucrative employment contracts for themselves with the acquiring company." (Barrett et al.). In today's economic society, companies are merging quite frequently. Sometimes it seems as if the huge payouts executive's get from a merger are benefiting the CEOs whose companies flaws made them susceptible to takeover.Some suggest that CEOs do not do nearly enough work to deserve the pay they receive. In an article titled, "The Care and Feeding of the Truly Greedy: CEO Salaries in World Perspective" the author, Lisa Newton claims that CEOs, "keep the company on an even keel, no scandals, distribute profits regularly, but remember to keep some of those profits to reinvest for the long term, because the long term is what you're in for" (Newton 237). Newton then describes the ways a CEO can put lots of money into the shareholders hands. First, he can rid the company of all extra expenses, ultimately devaluing the product. Second, he can raise the price, which would reduce sales. Third, he can try and develop new products which require more investment. Finally, he can cut costs. The easiest way to cut costs is by cutting jobs. According to Newton, "Fire lots of workers and you save lots of money." (Newton 241). Millions of jobs will be lost, yet costs will go down, and the stock prices will go up. This sequence of events is what causes CEO compensation to be so high.Another argument against outrageous executive pay is that it is downright wrong. Morality comes into question when a person is making thousands of times more money than some people, especially when some of those people are starving (Newton 242). CEO's should be more aware of their earnings and realize that they have more than enough money. With all the problems in this world, a person with millions of dollars should be able to make a huge difference by sacrificing some of their earnings.Outsourcing, a major issue...

Other Papers Like Are CEO's Overpaid?

Holidays In Albania Essay

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are

A Heart Of Darkness Essay

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages way than the film. The Infinite Improbability Drive "passes through every point in the Universe," (Adams 80). After being thrown out of an airlock, Arthur and Ford are rescued by the Drive with the “chance of rescue being 22079460347 to one against,” (Adams 67). Being rescued despite an astronomical improbability allows the novel to empower the theme of absurdity in a noteworthy way. The prominent focus the novel has on absurdity vastly differs

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages ‘It’s not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages’ (Henry Ford, cited in Johnson and Weinstein 2004, p. 2). When the Ford Motor Company announced that it would more than double the wages of its workers in January 1914 to a ‘five-dollar day’ minimum, was this a contradiction to Henry Ford’s statement? If customers are actually the ultimate payers of wages, then more than

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages apply structure to the new economy presented, but they were not flawless, and while their ideas are still in effect in today’s world, they also caused quite a few problems immediately and over time. Capitalism was a form of economy that played a colossal role in the industrial revolution. It was described in a famous Scottish philosopher, Adam Smith, in his book, Wealth of Nations. In this economy, people were to act selfish, doing what is

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages horses, and they were exhausted by two months long journey. (William, 2005) However, Henry’s leadership skills lead to the victory of the battle, the way he stimulated and motivated his soldiers are remarkable, and then his speech recognized by many people and become one of the most famous motivational speeches in history.( Seargeant, 2009) According to the movie Henry v, it shows that Henry use language to strongly persuade their solider

Cuba Civil Rights

1906 words - 8 pages . Along with thieves, gays and homosexuals were also put to death. In an article from Harvard in the 1960’s states that; thousands of gays were rounded up and sent to work camps. Also any homosexuals working in the arts industry fired and sent to do hard labor this practice went on until the late 1990’s when the practice did a complete one-eighty, now gays are praised and celebrated. Also Cuba abuses their people through the harsh prison conditions

US Freight System

1273 words - 6 pages marketplace and to enhance quality of life, effective investments in U.S. transportation infrastructure must be made and innovative transportation solutions must be considered • The freight railroads in the U.S. are poised to meet these challenges by offering multiple transportation solutions in a constant effort to meet customer needs The increasing population and transport of goods projected for the next 25 years, permits the League to continue playing

Democratic Peace Theory

1852 words - 8 pages democracy is called Democratic Peace Theory. However, research has begun to show that Democratic Peace Theory is ineffective and needs to be brought to an end as a model for how international relations are formed or destroyed. Democratic Peace Theory needs to be abolished as a support for forming foreign policy between democracies because of the burden placed on both parties to come to an agreement but still stand proud and victorious as a country

Booker T. Washington

1621 words - 7 pages , southern politics, appointing Black Americans to federal jobs, and granting funds to Black institutions.” Washington formed loyal supporters African Americans and Whites as well. Booker T. Washington and W.E.B Du Bois are similar to each other but disagree on plans for African Americans social and economic progress. “Booker T. Washington, educator, reformer and the most inflectional black leader of his time (1856-1915) preached a philosophy of self

Related Essays

Are Ceo's Really Overpaid Essay

1326 words - 6 pages Are CEO’s Really Overpaid? Amanda Lowery MG350 (31344) One of the main topics that a lot of the American people believe to be playing a major role in the country’s decline is overpaid CEO’s and upper management. Some say that as business demands become more unexplainable, the necessity for top executives increase and thus they are warranted to assign larger salaries regardless of their performance. Although paying

Freedom And Responsibility Essay

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws Essay

2348 words - 10 pages ). Lawmakers need to clearly define and identify a hate crime and require more severe punishments for those crimes because past and current laws are deficient, unequally applied, and too broad to be applied and enforced appropriately. The FBI started investigating “hate crimes” in the early 1920’s when it opened the first case against the Ku Klux Klan. In 1990, the FBI passed the Hate Crime Statistics Act, which requires the Attorney General to

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are