Assignment Type:Individual Project Deliverable
Length:3 pages Points Possible:100
Due...

Question

Assignment Type:Individual Project Deliverable 
Length:3 pages Points Possible:100 
 Due Date:3/17/2013 11:59:59 PM CT  AP'A formatted referencesThe Executive Compensation Committee of the Board of Directors has asked your 
CFO to develop a report of what has transgressed in the area of executive 
compensation in U.S. corporations to ensure that they are aware of what has 
happened in this area. Your CFO has asked you to develop a report that includes 
the areas of executive compensation, the complaints from employees, the 
rationale from the executives, and what the U.S. government has done about these 
complaints.
The student should write report to the CFO that addresses the following:

Explain why you believe that employees are outraged about outlandish 
executive compensation while their own pay has been reduced.
Describe your assessment of at least 1 example of compensation packages that 
appeared to be for the benefit of the executives, regardless of the cost.
Analyze the rationale of executives in cases when their compensation package 
is outwardly perceived as excessive.
Explain what the government has done in the attempt to curtail these 
apparent abuses in compensation.
Recommend what you believe constitutes an ethical executive compensation 
plan.
Include at least 3 properly researched facts as they apply to the debate of 
CEOs and excessive compensation.
Follow APA guidelines in citing the references.
Please submit your assignment.
The following grading criteria will apply to this 
assignment:

Grading Criteria

20%

Explain why you believe that employees are outraged about outlandish 
executive compensation while their own pay has been reduced.

20%

Describe your assessment of at least 1 example of compensation packages that 
appeared to be for the benefit of the executives, regardless of the 
cost.

20%

Explain what the government has done in the attempt to curtail these apparent 
abuses in compensation.

20%

Recommend what you believe constitutes an ethical executive compensation 
plan.

20%

At least 3 properly researched facts as they apply to the debate of CEOs and 
excessive compensation and follow APA guidelines in citing the references.

David · Accepted Answer

In recent years we have heard a lot about executive compensation and issues related to it, this topic got heated up more when economic downturn costs many employees their job, huge pay cuts, and when huge organizations like Lehman Brothers started filling for bankruptcy then employees, shareholders and for that matter stakeholders were all stunned. Their was and still their is an outrage in employees against the compensation benefit that an executive enjoys because of the proven fact that many a times executives risk the stability of the organization to earn their incentive, for an instance we can take Stock option wherein executive either manipulate the earning or repurchase the share in open market so as to inflate the share price of the organization and earn considerable amount of incentive out of it. We have seen huge job cuts, pays are decreasing and it undergoes serious performance evaluation, no or very less availability of job in the market especially in US as many organizations had outsourced their business unit to countries like China, India and other related country because of cheap labor market. So, the above mentioned reasons are enough to justify the outrage of these employees they always feel cheated as they think that not only they put their effort to do justice to their job but are also tax payers but they never gets any benefit out of it on contrary executive receives huge compensation and huge other perks and benefits even when the country was hit badly with recession. The employees are also fuming knowing the fact that they are asked to follow a lot of code of conduct and they have to undergo different performance evaluation method so as to prove their eligibility towards the work and organization but there is no performance evaluation metrics being set up for measuring the executive performance so as to save the business from any internal or external risk and pay them according to their performance. 
For an example we can take Merrill Lynch Executive Compensation Bonuses wherein they paid $4 billion at the end of their fourth quarter of the year 2008, the same quarter when they lost $ 15.3 billion due to poor management. Critics had said and have written a lot about this case,

Grading Criteria
20%	Explain why you believe that employees are outraged about outlandish executive compensation while their own pay has been reduced.
20%	Describe your assessment of at least 1 example of compensation packages that appeared to be for the benefit of the executives, regardless of the cost.
20%	Explain what the government has done in the attempt to curtail these apparent abuses in compensation.
20%	Recommend what you believe constitutes an ethical executive compensation plan.
20%	At least 3 properly researched facts as they apply to the debate of CEOs and excessive compensation and follow APA guidelines in citing the references.

Assignment Type: Individual Project Deliverable Length: 3 pages Points Possible: 100 Due Date: 3/17/2013 11:59:59 PM CT AP'A formatted references The Executive Compensation Committee of the Board of...

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