Contact Us
Sign In / Sign Up for FREE
Go to advanced search...
Nobody downloaded yet

The Pay of the CEO in the Organization - Research Paper Example

Comments (0) Cite this document
This paper "The Pay of the CEO in the Organization" discusses CEO that is the core of every organization and mostly, they determine what the company/organization does at the end of every financial year. It has been argued that the higher the CEO's pay, the good the returns of that organization…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.7% of users find it useful
The Pay of the CEO in the Organization
Read TextPreview

Extract of sample "The Pay of the CEO in the Organization"

Download file to see previous pages Further, the data collected was used to determine the amount the CEOs pay contributes to the organization’s rating. The data had several variables namely; pay, total, return rating and ratio. Regression analysis was carried out using STATA and the results follow.

According to David, K., and Ward, D. (2006), people tend to believe that CEOs are paid too much for what they do and for the services they provide. At the same time according to them, others believe that a CEO can have a positive effect on the performance of the organization and, therefore, high compensation is needed to attract the best talent (David, K. & Ward, D. 2006).

Judging in which the CEO is overpaid or underpaid is a huge task (Gough, J 2000). Many articles as Gough, J (2000) focus on high CEO pay where they simply survey the executives who have or have been receiving the most overall money in a particular year.

In addition, many indirect perquisites of the various organizations are possibly not included in the final figures which are said to be the CEO’s pay. In stocks, for example, the CEO is allowed to buy the stock at a certain value later down the road (Macdonald, N 1999). To him, if the CEO makes the companies do well, then the price of the stock (for example) down the road can be much higher and the CEO could buy shares for his option price.

Defenders of high executive pay say that the global war for talent and the rise of private companies/firms can fairly explain much of the increase in executive pay (Beech, W 2001). For example, in Japan, a senior executive has very few alternatives for his/her current employer while in the United States, it is totally acceptable and even many admire this, for a senior executive to leave an organization to a competitor; either to a private firm (Carey, C 2002).

Many questions, therefore, arise as to whether; the figures reflect an efficient market or a failed one, whether the pay levels adequately disclosed, whether shareholders should have a more say and lastly, whether there are fairness and justice (Alan C. 2003). ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(The Pay of the CEO in the Organization Research Paper, n.d.)
The Pay of the CEO in the Organization Research Paper. Retrieved from
(The Pay of the CEO in the Organization Research Paper)
The Pay of the CEO in the Organization Research Paper.
“The Pay of the CEO in the Organization Research Paper”.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Pay of the CEO in the Organization

CEO Communication Analysis Memo

If you can highlight all of these points in your report you will please all interested parties. Certainly, it can be a difficult balancing act, but it is important to appear confident and positive throughout. CEO of Nokia: Be responsible In the course of the three messages examined, the above elements appear again and again. In an annual report from a few years ago, the CEO of Nokia briskly discusses the company's values and then reviews changes made in the previous year to create value for investors and shareholders. He describes Nokia's vision as a world where everyone is connected. This is a great vision as it also communicates to investors that the company is listening to them and is responsive. The CEO goes on to speak about...
3 Pages(750 words)Essay

Research on any CEO

...? Steve Jobs is perhaps the most famous amongst the entrepreneurs and innovators of the century. He currently serves as the CEO of the Apple Inc. which he co founded in the late 1970s. Jobs spent most of his early life in California. He was born in San Frisco on February 24, 1955. Steve’s surroundings had a marked impact on him. He grew up in a place which was emerging to be a center of computer technology and electronics: Silicon Valley. Steve formed many important friendships that would hold a vital importance in his life later. He attended Cupertino Junior High School and Homestead High School. At Homestead, he became friends with Bill Fernandez as they same same interests in electronics. Through Bill he came to know Steve Wozniak...
4 Pages(1000 words)Research Paper

Changes in CEO/Executive Pay since 2000

...Changes in CEO/Executive pay since 2000 1. Introduction The debate on the issue of executive compensation has generated intense debate in the recent past. It has been argued that Chef Executive Officers are paid too much money that does not necessarily commensurate with their performance. Some of the high earning CEOs run companies that perform poorly and are on the verge of collapsing. Yet, some authors have suggested that the job of CEOs is very demanding and has very high expectations therefore the holders of those positions deserve to be paid well. As Howard (2004) points out, the job of a CEO has many risks and sometimes if a person is sacked from such a position it is very difficult to gain employment elsewhere. Therefore, he...
11 Pages(2750 words)Research Paper


... CEO and executive directors employee November 6, Defective product problem The company is currently facing issues in its quality control function. A number of the goods sold to the customers are reaching the general public with defects. Defective products are an undesirable business outcome that hurts the corporate image of the company. The defective products are a health hazard that can lead to serious injury. This memo will analyze the problem in order to provide the executive management team with alternative solutions to solve the problem. The existence of defective products put the company at risk of defective product liability. “When a person is injured by a defective product, they may be able to sue the manufacturer or seller...
3 Pages(750 words)Essay


... of CEO Pay A chief executive officer (CEO) or chief executive is the highest-ranking corporate officer or executive officer of a corporation, company, or agency1; this is according to how the corporate world operates. As the top manager, the CEO is typically responsible for the entire operations of the corporation and reports directly to the chairman and board of directors. It is the CEO's responsibility to implement board decisions and initiatives and to maintain the smooth operation of the firm, with the assistance of senior management2. Often, the CEO will also be designated as the company's president and therefore also be one of the inside directors on the board (if not the chairman). The average CEO of a Standard & Poor's 500...
4 Pages(1000 words)Essay

Home Depot CEO Robert Nardelli Severance Pay

...Home Depot CEO Robert Nardelli Severance Pay What's actually behind the US$210 million severance package that Robert Nardelli received when he left as chief executive officer of Home Depot on January 2, 2007 Should he receive such an amount when the stock price of Home Depot lost 6% of its value in the six years of his tenure as CEO of the company Apparently, one of the two chief causes of Nardelli's departure was his repeated refusal to tie his stock compensation with shareholder gains, even on a "symbolic" aspect according to BusinessWeek Online (Grow, par. 1-2). Nardelli reasoned that the stock price of Home Depot was a thing beyond his control - a reason however that was unacceptable to company investors and its board. Hand in hand...
3 Pages(750 words)Case Study

CEO Salaries

...CEO Salaries: Should They Be Brought In Line With Employee Salaries? In the face of global economic crisis, the world is now looking at the various factors that contributed to the ongoing economic downfall of the strongest economy in the world – the United States. One of these factors being looked at is the excessive pays that the US’s big companies give to their Chief Executive Officers (CEOs). Despite the non-disclosure policy of companies regarding their CEOs compensation packages, proxy indicators used by credible research outfits have yielded an alarming picture of a US CEO paid 364 times as the average worker (Paywatch by AFL-CIO, 2008). Should this trend in CEO salaries continue or not? My personal opinion is that the CEOs...
1 Pages(250 words)Essay

CEO Compensation

Case Study: The Debate over CEO Compensation The Chief Executive Officers are among the highest paid workers in the United s of America. Reports and researches show that they make 400 times compared to ordinary rank-and file employees in the US and several hundreds more than their counterparts in other countries like Japan and Germany. In 2000, it was 531 times. These facts were made the basis of a question whether or not the CEOs of the United States of America are overpaid.
The salaries and other benefits received by CEOs depend upon a number of factors. These include the size of the company, the works that are expected for the CEO to perform, and the economic status of the company, if it is gaining much for a certain perio...
2 Pages(500 words)Essay

Pay Structures, Pay & Merit

Running Head: Pay Structures, Pay and Merit Pay Structures, Pay and Merit Pay Structures, Pay and Merit Introduction Pay structure is the assemblage of pay proportions or pay assortments. The process of developing, adjusting and maintaining a pay structure is referred to as structure setting (Peter, 2002).
Pay Structures
In justifying executives’ pay structures, this study points out that the following factors as the main considerations (Worldatwork, 2007):
Geographic location and job level of the executive. Geographic location may result to a huge gap on executive pay structures. Those in hardship areas will be awarded more salary; in contrast those in normal working conditions will receive less remuneration regardless o...
2 Pages(500 words)Assignment


business by up to 2300%, it became an online bookstore before quickly diversifying into other ventures like selling VHS tapes and DVDS, video games, clothing, toys, electronics, software, and music CDs. Due to these efforts visible success, the Time Magazine, in 1999 named Bezzos as the 1999 Person of the Year.
The earnings per share for as at December 2014 were at $1.14 while the Return on Equity was at 40.2%. Since 2003, the company has had remarkable growth in sales. The total sales in 2003 were $5,743 and have grown to over $500 million in 2014, which also reflects a continuous increase in the net income. The company has a profit margin ratio of 3.2%, which is derived from dividing sales ($14,952) by net income...
5 Pages(1250 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic The Pay of the CEO in the Organization for FREE!

Contact Us