Several CEOs are not Paid According to the Principles of Expectancy Theory Over the past 25 years CEO pay has risen regardless of the economic or political climate as well as faster than corporate profits, economic growth or average workforce compensation. CEOs are getting $100-million-plus compensation packages while their firms are getting hammered as a result of the subprime mortgage fiasco. Is the time right for main reform of CEO pay? Although governments may come up with new improvements corporate boards can continuously find a way around the rules to pay CEOs whatever they want. Corporate proxy statements designate that firms are reporting specific performance targets on which CEO pay is determined as required by the SEC, however they are using as a result many different formulas that the end result is that the firms are still paying CEOs as much as they want. Is requiring CEOs to own a ration of company stock the solution? If stock is utilized as a compensation tool the stock must be unavailable to the CEO for some period of time to prevent short-term gaming of the system by manipulating stock price. For Debate Do you think that CEOs' pay must be tied to corporate performance? Describe. Conversation responses are subject to a word count for substance