11-5. Consult a recent news article about a company’s executive pay. Summarize the main issues ­detailed within the article.

11-5. Consult a recent news article about a company’s executive pay. Summarize the main issues ­detailed within the article.

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January 9, 2022
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11-5. Consult a recent news article about a company’s executive pay. Summarize the main issues ­detailed within the article.

Answer and ExplanationSolution by a verified expert

Chapter 11, End Of Chapter, Discussion Questions, Exercise 11-5
Page 276
Explanation
Generally, articles are either in favor of or are strongly against typical executive compensation packages.

When reviewing articles, it is important to consider both sides of an issue.
While all workers need to be paid fairly for their efforts, the resource article compares executives to star athletes who have a skill level far above many others, and who can promote success for an organization because of the combination of who they are and what they do.
Both CEOs and star athletes have unique skills and talents that a few have.
Sample Response
Executives in most organizations will be paid significantly more than others. According to F. John Reh in the December 2018 edition of The Balance Careers, hourly workers make less in a year than a CEO might make in a day.1 However, there is no comparison as to the education, years of experience, or differences in job duties, knowledge, skills, and abilities that might explain the statement. Other issues indicated include how an executive is paid, including bonuses, stock grants, deferred compensation, and expense accounts.

The article compared CEOs to star athletes and their ability to promote and realize success, creating positive impacts on the direction and strategy of an organization. The stated condition, however, becomes an issue when organizational performance is poor and workers are losing their jobs, while senior executives continue to make high levels of compensation.

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Work cited:

"The Issues and Debates Surrounding CEO Compensation," The Balance Careers (December 2018). https://www.thebalancecareers.com/ceos-are-overpaid-2275136.

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