Question

Do you think that whether U.S. senior executives are overpaid or not, and briefly present your case? Provide examples from the course or external sources to support your position.

Answer 1

No, I don't think that U.S. senior executives are overpaid. What they are paid is simply what they contribute to the income of organization/company they work in. For example consider a hypothetical company of which you're the founder and now you're looking for a CEO to operate this company, now you hire the best candidate and offer to pay him a handsome payout and now suppose if you could have hired someone with the same qualities that of the person you hired in the first place at some lower payout then you wouldn't have hired the person you actually end up hiring.

To understand this better we need to understand what exactly does a U.S senior executive do or in other words what's their job in the organization/company. Leadership is critical for the growth of any organization/company. Senior executives are responsible for every business decision that the company makes whether it's a merger with another company or selling its some stake to another company. Whether to bring new product in the market, if yes then at what time it's best to bring this product in the market. In a nutshell the fate of organization is solely in the hands of senior executives. They are the sailors of ship whose job is to keep the ship safe and keep it running at same time.

And they also know that they are only get paid for making higher profit for the company which itself decides their payout. Every year in USA many companies goes bankrupt and many makes fortune and for both senior executives are held responsible.