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Remuneration of Executive Directors - Case Study Example

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This paper "Remuneration of Executive Directors" discusses globalization that in recent decades has been majorly detrimental to the health of several businesses on a global scale. Many lay off their workers, while others shift their resources in order to prevent their losses from becoming chronic…
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Remuneration of Executive Directors
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Download file to see previous pages With respect to this observation, this paper studies the remuneration of executive directors and delves into the issues and theories concerning their outrageous amounts, and the debates that arise from them.

The debate on the remuneration that executives receive has been carried out for several years. A recent factor, which has heated this debate even further, is the current recession and its effects (The Economist, 2010). This stems from the fact that over 13 percent of the residents of the US are unemployed, while millions of others struggle to hold on to their jobs as their salaries and wages are reduced from what they used to be (Robbins, Judge & Judge, pp. 278, 2008). Apart from this, Lehman Brothers experienced a downfall and needed two bailout packages from the government to recover and prevent further such happenings. This occurrence has made the common person wary of the way the scarce resources are employed, and that they should be treated as scarce instead of being wasted.

However, people who only see half the picture make the majority of the complaints and criticisms that the system of high remunerations receives. They see how these directors receive huge salaries for what they do, but they do not consider or even know about the stressful and demanding jobs that these directors do which help them secure such large payments (The Economist, 2010). This is a critical element that is missing from their perspectives, which makes theirs an unfair, unbalanced perspective. These critics do not bother considering the perspective of the CEOs themselves, or the significance and value of their services (The Economist, 2010). This paper aims to prove that, for this reason, their perception is flawed, and that the CEOs do earn the money they receive, using research, and statistics.

It is an observation (Robbins et al., pp. 23-39, 2008) that a huge number of experts have carried out research on the issue of remuneration of executive directors in the United Kingdom, as well as in the United Kingdom, especially during the last decade. ...Download file to see next pagesRead More
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