The Executive Compensation Committee of the Board of Directors has asked your
CFO to develop a...

Question

The 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.
Write a 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.
4 Pages APA Citations

Robert · Accepted Answer

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REPORT 
OUTLANDISH EXECUTIVE COMPENSATION 
It has been found in almost all the companies where the employees are given less of payments, 
while the executives and the engineers are compensated with a huge amount. It has been 
observed in the recent past that this is the case with all the companies where the employees are 
given very less of the compensation.  
Therefore, it can be said that there has been an outraged in the part of the employees of the 
company as the compensation given to the employees is excessively low. It is important for the 
companies to make sure that with this act of theirs the employees are not getting demoralize or 
de-motivated, as this will lead non-efficiency of the employees which is not a good sign for any 
kind of a company or a business. 
BENEFITS FOR THE EXECUTIVES, REGARDLESS OF THE COST OF THE 
COMPANY 
There are times when the executives get a salary package which is beneficial for them, 
irrespective of the costs of the company. The executives get a fixed amount of salary for the 
work which is done by them. The company appoints some of the executives, just because of 
some kind of source. Though the person appointed is not at all qualified for the post properly, yet 
they are employed as the executive of the company.  
One of the basic examples of this situation is the Vodafone Essar. In this particular case, one of 
the executive of the company is due to the fact that he is a relative of the owner of the company. 
Due to his good terms with the company, he also gets a huge sum as his salary package which is
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very much beneficial for him. Without proper qualification and by giving no justification to the 
post where he is appointed, he enjoys his post because of the huge salary given to him by the 
company. This is one of the most basic examples of the situation where there is a discrimination 
done by the company towards all its employees. 
EXCESSIVE OF COMPENSATION PACKAGE TO THE EXECUTIVES OF THE 
COMPANY 
There is a lot of partiality done by the company when the company gives bonuses to its 
employees. Generally, the company compensates the executives with a huge amount of bonus, 
while the bonus given to the employees of the company as compared to that of the employees is 
very much less. The shares of the company as well are available to the employees at a very low 
rate and the same shares are available to the employees or the workers of the company at a very 
high rate as and when compared.

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