A LITERATURE REVIEW
A literature review on the argument regarding the justification of the excessive salaries and perks offered to the higher management of companies against the services that they offer for the management the day to day affair and decision making.
Download file to see previous pages...
In an article published in Business Week, In 1980 it was established that the a Chief Executive Officer working at a any foremost organization, on average, makes approximately 42 times compared to what a worker works on a normal hourly pay.
In the next decade, i.e. 1990, this rate had crossed the doubled mark as it was up to 85 times compared to a normal hourly pay of a worker and in the next decade i.e. the twentieth century, the average salary of a Chief Executive Office has climbed to an incredible 531 times of the regular workers’ hourly pay. (Management 2000)
This has been always an argument regarding the fact that the management, especially the top management, such as the Chief Executive Officers, Directors, Chief Financial Officers and the Heads of Departments etc are paid extensively more that the normal employee even though their job is limited to the decision making part while the workers have to put in extra impetus from the planning to the implementation stage.
Let us go research in this respect whether the management remuneration is justified.
Shleifer and Vishny (1997) in their research have described the corporate governance as the means where the providers of funding guarantee a return on their investments for themselves.
Since, the profits of the investors largely depend upon the contracts incurred between themselves and the company so a variety of markets operations and the performance of players of finance has developed into various sub-literatures.
literatures. need for the growth in pay of executies Lucian Bebchuk in his article “The Growth of Executive Pay’, discussed the reasons and the need for the substantial increase and the growth of the pay of executives and the top management personnel. He has justified the growth in the pay scale by the comparison of the size of the organization where the executive is employed. He mentioned “Remuneration level is predictable to augment due to the increase in the size of the firm and performance of the management, which may vary from industry to industry” He has researched over the average size of the S&P 500 firms from 1993 to 2003 and has expressed the fact that with the relevant increase in the size of the organization or the performance of the company, the compensation of the executives has increased side by side showing a very linear trend. Kaplan and Rauh (2009) inspected the query regarding if increase in the management remuneration can imitate the forces of the market. The idea was that if a top management personnel’s pay imitates the market forces; in that case its increase should be in line with that of other extensively paid occupations. Kaplan and Rauh also assembled some information on the compensation of high yielding professions such as the employees from the financial service sector, banks, and funds and compared them to the compensation received by the business lawyers, professional athletes, doctors and celebrities. Murphy and Zabojnik (2007) proposed the thought that the escalation in management remuneration embodies the move in the significance of the ability of the managerial staff i.e. the talent and ability which is capable of being transferred through several companies related to the human capital which is specific to the firm i.e. precious only to the extent of the organization, which functioned to support the bargaining point of the top executives through improving their options of working at another organization. different views of executive compensation Holmstom (1979) in his article published in the Bell Journal of Economics has discussed several views of the executive compensation of which he has highlighted two of those views. He discusses that one of the view which he highlighted as the
...Download file to see next pagesRead More
Cite this document
(“Is management remuneration too excessive Essay Example | Topics and Well Written Essays - 3000 words”, n.d.)
Retrieved de https://studentshare.org/finance-accounting/1390966-is-management-remuneration-too-excessive
(Is Management Remuneration Too Excessive Essay Example | Topics and Well Written Essays - 3000 Words)
“Is Management Remuneration Too Excessive Essay Example | Topics and Well Written Essays - 3000 Words”, n.d. https://studentshare.org/finance-accounting/1390966-is-management-remuneration-too-excessive.
The remuneration committee members and remuneration consultants are the key players in the remuneration-setting arena (ibid). As Collier and Agyei-Ampomah (2009, p. 90) point out, the remuneration committee has the function to ensure that remuneration arrangements are in line with the company’s strategic aims and facilitate recruitment, motivation, and retention of executive directors.
This new version is defined as the Directors’ Remuneration Regulations 2002. The purpose of the new regulations is to include some essential elements surfaced in respond to the recent giant collapses such as Enron, WorldCom. Before going to summarize the essential points relating to the directors’ remuneration, it is important to explain the term “remuneration”.
Very thin models in catwalks also encourage unhealthy eating behaviors that can result to eating disorders. Preti et al. in their article, “Eating disorders among professional fashion models,” have cited that skinny fashion models have a greater risk of eating disorders in order to maintain their size.
It has been observed that director’s remuneration packages have got much of the media and shareholder attention due to its bipolar nature (OUP, 2009). Industry experts have pointed out that companies need to address following four issues regarding the director’s remuneration packages.
fixed or variable) have an effect on fair presentation of financial statements? 9 Findings of the Study 10 Research Question 2: Does directors’ remuneration either of its components (fixed or variable) have an effect on overall organizational performance?
A pest is the name given to any insect, plant, weeds, birds, fish, roundworms and microbes which compete with humans for food; they may destroy property, may spread a disease or act as a vector for disease.
Historically, the American Dream meant that every American could improve their life and achieve their goals by working hard to control their own destiny without regard to class, caste, race or ethnicity (Wikipedia, The American Dream, n.d., para. 1). The American Dream was accomplished by attaining education, a career, a better life for family or personal freedom.
In this paper we will discuss the security issues for modern libraries and the ways un-authorized people can steal libraries information. This paper is a good help for many other organizations with electronic data and a computer network too.
Wireless Networks are widely used both for individual or business purposes.
Excessive use of powers invested by means of law by police and the resulting complexities become a major problem in many US States. When a conflict occurs between the society and the police, it will badly affect the enforcement of law.
Police officers represent the government which is required and entrusted to work within legal boundaries (Ortmeier, 2006). Police officers should have a higher standard when putting on the uniform and wearing a badge. However,
3 Pages(750 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Is management remuneration too excessive for FREE!