Discussion Posts About CEO's Compensation

Week 5 - Discussion 1
Response to Joe Fussell
Great post as always, Joe. I don’t think it is ethical for CEOs to make large fortunes during challenging times such as wage reductions, layoffs, and cost-cutting. I think during such time, the CEO’s pay should reflect the challenges the organization is experiencing. However, when the company is performing well, courtesy of the decisions made by the CEO, I think the high executive compensation is justified. In this case, when the company is performing well, I think a program like profit-sharing bonus plan can be integral in averting resentment and poor morale on the part of employees. If the companies attain profitability majorly due to the decisions made by the executive, I think having employees share the profitability can help see the sense in paying CEOs highly. Nice work!
Response to Johanna Nunez Lanfranco
Great post, Johanna. I also chose to discuss the same statement as you. I agree with you completely that the compensation the CEO receives is tied to performance. The decisions they make impact to a great extent the profitability of the firm. Given this responsibility, it makes sense for organizations to pay them highly. Furthermore, their decisions influence the performance of the company both in the short-term and in the long term. Given that they make decisions that impact the operations and success of a company for several years to come, the high executive compensation is justified. It is important to recognize also that exemplary CEOs a...