Have CEOs been overpaid or do you think their compensation is just adequate? Identify and describe three leadership and/or management basis or reasoning why you think that they have, or three reasons why you think that they have not (no emotions).
Provide a well-reasoned rationale from the case text above, from your knowledge of the subject with specific citations, and from your understanding of competitive leadership in this area. Is CEO pay connected to competitive reasoning at all? Explain!
How can, or should boards of directors and their governance procedures be structured so as to better serve shareholders broadly?
Describe two competitive strategies on how that could be done. How would you define by evaluating in your own terms, the leadership that these BOD'shave shown in this case?
Should these boards of directors be making additional provisions beyond their primary responsibilities on how to best serve other stakeholders as well? What three constituencies would this cover? If you agree, describe two competitive ways that such objectives could be implemented and achieved. If you don't agree, describe two reasons why you disagree and why this strategy/s could possibly impair competitive advantage in the market place. Address market forces if they are implicative here. Make an argument!
What are your market predictions for the future regarding the level and appropriateness of CEO pay? Discuss this issue with a Business Leader or Manager; and then describe two future scenarios that could evolve concerning CEO pay and provide the rationale on why you think the trend could take those routes. Identify the professional that you have discussed with, and include their predictions as well. Explain two convincing reasons why CEO pay has customarily followed this exorbitant trend from the past.
Why has this practice persisted even in today's economy? In other words what has been fueling high pay? Explain!
Review your views concerning the conventional disparity that is quite obvious today between Executive Managers and line managers in the area of compensation. CEO's have for years amassed top earnings while junior managers have been made to skimp on mediocre salary levels. Do you see anything inequitable about this or not? Defend your argument using sound leadership, management principles and practice.