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Should Top Executives Make The Money They Do CONTENTS Abstract iii Introduction 1 High Pay Seems Small When Compared To Company Profits 2 Top Executives Are Under A Lot Of Pressure 3 US Executives Paid Three Times More Than Other Countries For A Reason 4 Pay Should Reflect Performance 5 Conclusions And Recommendations 6 Notes 8 Bibliography 9 ABSTRACT This report explores the issue of the pay that top executives make and the reasons why they do It also suggests improvements that can be made to make the system better High Pay Seems Small When Compared To Company Profits Many companies pull in profits that are extremely high When an employee of such a companies salary is compared to the amount of profit that the company earns it starts to seem reasonable It only makes sense that if the employee is directly responsible for the success of their company then they deserve to get their payback It seems ironic but many salaries even look small once compared with a companies profits Top Executives Are Under A Lot Of Pressure Being the CEO of a company is not an easy job There is all kinds of pressure for a person in such a position to succeed If they do not then it is their job on the line Therefore they deserve to receive a large sum of money for the work that they do It is the only way to compensate these employees for the tremendous strain that their job puts on them It is essential that the employees get paid the amount of money that they deserve Pay Should Reflect Performance When CEOs are being given big paychecks they are expected to perform at a high level There success is impeccable However this does not always happen There should be some way of connecting pay to job
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