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2 pages/β‰ˆ550 words
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2 Sources
Style:
APA
Subject:
Business & Marketing
Type:
Essay
Language:
English (U.S.)
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Topic:

Evaluation of Ethical Considerations of Executive Compensation

Essay Instructions:

This assignment provides you with an opportunity to summarize ethics in financial responsibilities and to evaluate ethical considerations of executive compensation by writing a persuasive essay. In your essay, take a position on the following topics, and support it with evidence. Evidence can be facts, statistics, and quotes from scholarly articles, reliable news sources, or even anecdotal examples from personal experience. You may use any of the readings from this course,
or you may find new ones to support your position. At least two pieces of evidence should be used (one for each topic).
1. Do you think executive compensation in its various parts (i.e., salary, stock options, severance packages) funded
at the current level is unethical? If so, how would you revise the compensation so that it was just? On what basis
would you change it? Does the government have a role to play? If so, in what manner?
2. Is the Sarbanes-Oxley Act too strict, not strict enough, or just right? Explain.
Your essay should be at least 500 words in length, double-spaced, and written in Times New Roman, 12-point font.
Use APA Style to format your citations.
Must be under 20% or under for plagiarism through SafeAssign

Essay Sample Content Preview:

Evaluation of Ethical Considerations of Executive Compensation
Name
Institution
Evaluation of Ethical Considerations of Executive Compensation
Do you think executive compensation in its various parts (i.e., salary, stock options, severance packages) funded at the current level is unethical? If so, how would you revise the compensation so that it was just? On what basis would you change it? Does the government have a role to play? If so, in what manner?
Yes, I believe that executive compensation is unethical and needs to be revised. Today, every CEO is getting paid a lot of money regardless of whether they truly improve a company. Dunlap said “you cannot overpay a good CEO, and you can’t underpay a bad one,” and I tend to think that his words are an explanation of what is happening right now. A majority of the CEOs in the world today, especially those running big companies, are either billionaires or are earning millions of dollars every year and this trend is not about to change soon. Initially, the production workers’ pay grew a lot faster than the CEO’s pay, but today, it is widely different and the CEOs are getting more perks than those who truly run the company.
Given a chance to revise the compensation, I would do several things with the first being aligning the CEO’s interests with the company’s long-term interests. To do this, I would first require “the ownership of real stock with extended holding periods” (Elson, 2003). Aside from the above, I would also introduce the concept of independent compensation committees. These would be free from the CEOs’ influence, and their suggestions would be taken as the final word. CEOs often like to have compensation committees which they can manipulate or ones which they know their interests will be protected and upheld. However, having an independent one would help to ensure transparency.
Finally, the government does not need to get involved. However, through Acts like the Sarbanes-Oxley Act, it can continue to prevent fraud a...
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