Question

o you believe most CEOs in U.S. companies are overpaid and underperform? Explain. What pay or...

o you believe most CEOs in U.S. companies are overpaid and underperform? Explain. What pay or performance criteria do you believe should be used for top-level officers in publicly traded companies?  

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Yes, after considering the huge variance between the median pay of the company and CEO's compensation I do believe most CEO's are overpaid. As their compensation is hugely linked to shares they have tendency not to take the decision which are beneficial for the company in long run they tend to make Wall Street happy. This satisfy their 2 objectives, first they don't need to take some courageous moves thereby maintaining status quo and underperform, second it helps them get piece of company's increasing stock's pie.

In my view CEO's compensation should be linked to:

1. Employee median pay and work satisfaction

2. Enterprise Value

3. Performance of company on ESG grounds and social responsibility

Please Like and Support!!

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A study of the pay of corporate chief executive officers (CEOs) examined the increase in cash...
A study of the pay of corporate chief executive officers (CEOs) examined the increase in cash compensation of the CEOs of 97 companies, adjusted for inflation, in a recent year. The mean increase in real compensation was x = 6.8%, and the standard deviation of the increases was s = 45%. Is this good evidence that the mean real compensation μ of all CEOs increased that year? Ho: μ = 0 (no increase) Ha: μ > 0 (an increase) Because...
Explain why companies do not simply pay out dividends as a portion of their profits. What...
Explain why companies do not simply pay out dividends as a portion of their profits. What do most companies do in terms of dividend policy?
Identify and discuss what you believe to be the major things that top-level and middle-level corporate...
Identify and discuss what you believe to be the major things that top-level and middle-level corporate executives can do to stimulate and lead entrepreneurship in their companies.
What do you believe to be the most likely outcome for the ACA as of December,...
What do you believe to be the most likely outcome for the ACA as of December, 2020 (i.e., what will be its status at that time)? Explain clearly WHY you believe this will be the case. (NOTE: Of course, there is no “correct” answer for this question; however, as a healthcare professional, you will frequently be asked for your opinion on important issues such as this one, and you need to be able to offer an informed and well-reasoned response
What changes have taken place in capital budgeting techniques used by U.S. companies? Explain in detail...
What changes have taken place in capital budgeting techniques used by U.S. companies? Explain in detail the impacts of these budgeting techniques.
Which components of a lease are likely to be most negotiable? What do you believe are...
Which components of a lease are likely to be most negotiable? What do you believe are the most important factors a person should consider when selecting housing? What are some common mistakes a person might make when renting an apartment or other housing?
Some experts believe that publicly-traded companies engage in greater planning than do privately-held companies. To test...
Some experts believe that publicly-traded companies engage in greater planning than do privately-held companies. To test this question, imagine that you know population standard deviation for company planning (based on a comprehensive executive survey) for all privately-held companies is 1.65, and for publicly-traded companies is 1.25. What do you conclude? Firm ID ownership (private = 1) firm performance customer orientation long-term orientation benchmarking planning risk taking 1 1 4.33 5.50 6.20 5.00 1.00 5.00 2 0 4.00 6.25 4.80 1.83...
Describe what you believe to be the most important process in implementing a performance management system,...
Describe what you believe to be the most important process in implementing a performance management system, and how can HR ensure that a new system is fully embraced by both management and employees?   
Assume you are the Chief Operating Officer (COO) for a publicly-traded company that has three separate...
Assume you are the Chief Operating Officer (COO) for a publicly-traded company that has three separate divisions. Each division produces and markets a separate line of products. The products do not compete with each other, and each division operates in a relatively autonomous environment. Accordingly, each division is deemed to be an investment center. The company’s CEO has charged you with designing a uniform evaluation system that will be used to evaluate each of the division managers. Prepare an executive...
Please answer to the following questions: What performance appraisal method do you believe would best apply...
Please answer to the following questions: What performance appraisal method do you believe would best apply to the evaluation of a college professor? How often do you think performance appraisals should be conducted?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT