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Do you believe most CEOs in U.S. companies are overpaid and underperform? Explain. What pay or...

Do you believe most CEOs in U.S. companies are overpaid and underperform? Explain. What pay or performance criteria do you believe should be used for top-level officers in publicly traded companies?

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Answer #1

CEO of the organisations are heavily overpaid in United States of America. As compared to a General employee of the organisation they are paid hundreds of times more than the base salary of an employee in the organisation. As many of the organisation does not totally depend on CEO, many of the managerial departments are the real entities that carries forward the whole brand. An ordinary CEO of a company is usually heavily underperforming and paid extensively in the respective operating segment. Annual salary of any specific CEO in most of the organisations extensively large as compared to a base employee of the organisation who is responsible for doing critical tasks.
There is an exception with the publicly traded company as before 2011 there was an extreme decrease in the overall salaries generated by the CEO of the organisations, this directly increase the overall profit generated by the organisation boosting employee morale. SN availability of criteria, this answer payment directly creates a question on availability of positive working conditions for the employee where employees are working hard for the success of the organisation and the whole credit is taken by the CEO, even after knowing that the most of the work is bitten by the managers and other smaller employees of the specific organisation.

Using the criteria where availability of total profits by leadership approach used by the CEOs should be assessed. Adjustment of such a specific type of traits would enable an organisation to maintain better quality of standards in providing payments as well as for their decision and equal treatment in the respective environment. Extreme executive compensation should be decided on the over dividend given to the organisation and limiting a maximum pay for CEOs should also be done to create an impact on ethical availability of decision making that could impact the employee of the organisation by a huge margin.These CEOs usually make 200 to 300 times more money than they actually deserve. Measurement of the value should be done on creation of the policies as well as implementing those policies in the organisation that could affect the overall outcome of implementation of that specific service.

By assessing the specific type of criteria for the CEOs, any organisation can implement a better structure of payment as far as it would be directly affect the overall employee morale and help an organisation to create awareness in decision making for delivering the adequate level of salary to the CEO of any organisation.

P.S.- Please leave a comment if any explanation is needed.

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