Executive Compensation to Motivate CEOs for Better Performance

This week, we begin to look at another subspecialty within human resources, and this is the area of compensation (pay and benefits). We are looking both at how employers establish a pay structure for the organization (Chapter 12) and how organizations use pay to recognize and reward employees (Chapter 13).
As always, we need to consider how other aspects of human resources (for example, job descriptions, the labor force, and equal employment opportunity law) impact this area of human resources. Remember, everything in human resources is connected with the whole!
For this week's online content discussion, choose one of the following prompts for your response:
1. Summarize the legal requirements that employers must consider when developing their pay systems. Which laws impact the employers' decisions? How does the surrounding labor market impact the employer's choices about pay systems? And how does an employer decide what a given job is worth?
2. What are the different ways in which an employer might use compensation to reward individual employees? What are the pro's and con's of each of these methods?
3. What do you think about executive compensation? Should chief executives make many times the amount of money that other individuals in the organization make? Why or why not?
You'll want to respond with a thorough answer to the question (400 - 500 words).