Headed for Top Dollar - high executive pay Free Essay, Term Paper and Book Report
Performance based bonuses reach all time highs in the 1990s. The stock market was soaring, and stock options were the currency of choice because companies did not have to pay that expense immediately. The Wall Street Journal also stated that the average salary and bonus for a chief executive rose a phenomenal 39 percent, to $2.3 million in 1996. Retirement benefits, incentive plans, and gains from stock options are also added to the CEO's compensation package. Incentive plans cover two or three years and incorporate such metrics as profitability and the company's stock price. The categories that Business Week use are salary, bonus, stock gains from option exercise, and market value of restricted stock received. The average salary in the top of the list is $1 million - $3 million. Many believe that CEOs are paid too much for the services provided, when they arent the ones engage in the day to day work that makes they company run. While others believe that a good CEO can have a positive effect on the company's performance and that high compensation is needed to attract the best talen......
Word Count: 697
Page Count: 2.7 (250 words a page / double spaced)
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