Should Top Executives Make The Money They Do?

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Term Paper Title	Should Top Executives Make The Money They Do?
# of Words	2598
# of Pages (250 words per page double spaced)	10.39

Should Top Executives Make The Money They Do?

Should Top Executives Make The Money They Do?

CONTENTS

        Abstract ........................................................... iii
        Introduction ....................................................... 1
        High Pay Seems Small When Compared To Company Profits .............. 2
        Top Executives Are Under A Lot Of Pressure ......................... 3
        US Executives Paid Three Times More Than Other Countries For A
                Reason ..................................................... 4
        Pay Should Reflect Performance ..................................... 5
        Conclusions And Recommendations .................................... 6
        Notes .............................................................. 8
        Bibliography ....................................................... 9

ABSTRACT

This report explores the issue of the pay that top executives make, and the
reasons why they do.  It also suggests improvements that can be made to make the
system better.

High Pay Seems Small When Compared To Company Profits

Many companies pull in profits that are extremely high.  When an employee of
such a companies salary is compared to the amount of profit that the company
earns, it starts to seem reasonable.  It only makes sense that if the employee
is directly responsible for the success of their company, then they deserve to
get their payback.  It seems ironic, but many salaries even look small once
compared with a companies profits.

Top Executives Are Under A Lot Of Pressure

Being the CEO of a company is not an easy job.  There is all kinds of pressure
for a person in such a position to succeed.  If they do not, then it is their
job on the line.  Therefore, they deserve to receive a large sum of money for
the work that they do.  It is the only way to compensate these employees for the
tremendous strain that their job puts on them.  It is essential that the
employees get paid the amount of money that they deserve.

Pay Should Reflect Performance

When CEOs are being given big paychecks, they are expected to perform at a high
level. There success is impeccable.  However, this does not always happen.
There should be some way of connecting pay to job performance.  The best way of
doing this would be to award bonuses to those workers who are at the top of
their class.  This would not only motivate workers to do a good job, but also
reward the employees that do succeed...

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