Are Ceo's Really Overpaid

Are CEO’s Really Overpaid?

Amanda Lowery

MG350 (31344)

One of the main topics that a lot of the American people believe to be playing a major role in the country’s decline is overpaid CEO’s and upper management. Some say that as business demands become more unexplainable, the necessity for top executives increase and thus they are warranted to assign larger salaries regardless of their performance. Although paying executives for their performance when it produces a financial success for his or her employer may be viewed as the normal thing to do, it is not as sensible as it should be. Corporations are so fast to give extra pay to top executives when things are going well for the company. However, they seldom hold them responsible when the company takes a turn for the worse. Instead of making the executives step up and take their share of responsibility for the financial mess they help create, the companies continue to create more of a financial burden by increasing their salaries. Even when profits are down and the company is on the border of filing bankruptcy, some top executives continue to accept the compensation they were promised originally. Due to compensation agreements not coming with any stipulations regarding financial difficulty, the company’s hands are tied and feel obligated to follow the original agreement or to increase salaries in an attempt to keep these executives within the company. Regardless of their reasoning, the company is forced to make cuts affect people all the way down to the average worker.

Management is defined as the process of administering and coordinating effectively and efficiently in an effort to achieve the goals of the organization. Managers plan, lead, organize, and control. Today’s workplaces are growing and going through rapid changes due to many factors such as the impact of globalization, revolution of information technology, an increasing demand for knowledge-workers in the knowledge...