Compensation and Organizational Performance - Essay Example

The debate on whether CEOs’ pay should be justified by their performance is an administrative issue that has generated diversified opinions. I however agree with Ira’s position that CEOs’ pay should be justified by their performance (2006), an opinion that is supported by research findings. It has for example been established that compensation for the CEOs is directly proportional to the performances of their respective organizations. It is therefore reasonable to continually increase a CEO’s compensation following the high performance. Similarly, increasing compensation will improve performance and organizational productivity (Sigler, 2011; Mejia, Berrone, and Santos, 2010). These findings are further consistent with rational factors such as reasons for the compensations, and the values that the executives add to organizations, which support the executives’ high pay (Ng, n.d).

Similarly, the advertisements lead to unhealthy consumption and health complications among children (Nadeau, 2011). Establishing restrictions on the sales campaigns that target children will also be consistent with efforts in other countries that aim at protecting children (Ppu, n.d.).