The requirement is for an outline and ideas around CEO
Compensation.
The following points could be examined
- CEO Pay has been increasing between 2-6% over the last few
years for S&P 500 companies. More than base pay the trend is to
link CEO pay closer with overall business performance - turnover,
share prices, profitability etc.
- Also over time the gap between CEO pay and the median salaries
of employees within the company seems to be increasing across the
US and some other countries. This is creating an entire discussion
around pay equity as a top HR issue across organizations.
- The nature of growth and structure of CEO pay has also caused a
lot of trouble with respect to corporate governance issues as well,
especially in emerging markets like India over the last few years,
where the number of cases of corporate frauds and company
defaults/bankruptcies as a result has risen alarmingly. There have
been quite a few cases of high profile corporate frauds resulting
from the linkages of CEO pay being overtly linked to company
performance in the short term.
- There is also a lot of discourse around how justified extremely
high CEO salaries are in light of the growing inequality in
capitalist economies which can be closely looked at
- High CEO compensation associated with appointment of marquee
CEOs also seemss to drive up enterprise value for publicly held
companies and is one of the strategies used by the corporate world
to boost enterprise values and ratings without really improving
underlying fundamentals of the company.