Are CEOs over paid?
A Chief Executive Officer (CEO) of any company, large or small, wears the hat of many during their daily business routine. Their determination and mindset of how the company should perform is a key factor on if the company fails or succeeds. Investor relations, Business Development, Commercial Operations, Finance, and many other departments depend on the primary focus and decision of the CEO to provide a stable, profitable and safety regulated environment for all employees. Creating culture and building the executive management team all while generating profit is not always an easy task. However, CEOs are hired to perform a specific duty and are generally compensated generously in return. In 2009, Larry Ellison, Oracle Corporation (ORCL) CEO was announced the highest paid CEO banking $84.6 million. (www.dailyfinance.com) In retrospect, the national unemployment rate for 2009 was a devastating 9.3%, leaving millions unemployed. (www.data.bls.gov) How can one person be compensated at such an extreme level while the economy is facing one of its highest historical economical financial crises? This compensation includes, but not limited to, salary, bonuses, stock options, health benefits, travel fare, etc. The highly controversial topic to be discussed in this paper is, “Are CEOs overpaid?”
Pay Me My Money!
The Chief Executive Officer is the most valuable, highly respected, and high demanding position within the upper level executive management team of a company. The CEO works directly with the Board of Directors (BOD) and other shareholders in analyzing and creating solid strategic business plans for the vision and mission of the company as well as the well-being of their employees. The CEO makes daily decisions from what pantone color the corporate logo should be, to choosing an equal opportunity employment benefit package, to conducting meetings with investor relations on the present and future financial forecast for the company....