Summary
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Executives are being unfairly portrayed by media people and politicians as receiving excessive amounts of compensation. What is being overlooked in their attacks against executives is the fact that CEO pay is usually linked to company performance. Moreover, good CEOs are worth the money they receive when one considers that there is a limited supply of good executives and that they create enormous value to their corporations. Actually, the problem is not that CEOs are paid but that companies underpay outstanding non-executive employees who are lucky just to earn even 10% more than the average pay despite their enormous contributions. The solution is to develop reward systems that provide outstanding pay for outstanding individual and team performance. Companies that have already done this are ValuJet Inc. and Gaylord Entertainment.See the full content of this document
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Are CEOs paid too much?
The problem isn't that CEOs are paid too much, it's that outstanding employees are paid too little. Most top performers earn hardly more than the average, although they work much harder and create tremendous value. THe solution? Implement a broad-based compensation system that defines and rewards outstanding performance.
Every spring day, another proxy statement appears in the mailbox - and another newspaper headline attacks CEO pay. The criticisms are familiar: "CEO pay is unrelated to company performance." "No one is worth that much money." And the most emotional of all: "The pay gap between CEOs and average emp...See the full content of this document
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