The Pros And Cons Of Chief Executive Compensation

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Introduction In today’s media most discussion of chief executive compensation almost always talks about the absurd cases of executive compensations. One must remember that the top 200 company’s chief executives officer’s pay scale is going to be higher than smaller companies which are more numerous in numbers. One question is that should stock options actually be viewed as pay compensation?
There has been an enormous difference between the compensation of corporate chief executives officers and the average worker of the company drastically over recent years. At one time the pay difference between the corporate chief executive officers and their employees was only 40 times the amount, now it is up to over 500 times that amount.
One must remember that a corporate chief executive officer compensation pay package includes much more than their paycheck. The valuable stock option, which could give the chief executive officer the right to buy shares in the company at a better rate than using a …show more content…
The pay can be very lucrative along with high stress and long hours just to mention a few drawbacks of being chief executive officers. In today’s society the employees, stockholders, the board, and congress are holding the chief executive officers more accountable for the decisions the organization makes as a whole due to the large pay compensation that they receive as a whole. The chief executives of the company wants to take the credit and be compensated for a company making a profit, doing well in the stock market or going in the right direction, society are also making the chief executive personally responsible if company fails, steal from the public or its employees performing unethical behavior congress and society are making the same chief executives officers for responsible for that action also performed within the business
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