http://finsec.wordpress.com/2010/11/22/5-59-million-westpac-ceo-salary-package-unethical/
In this article it brings light on other issues around the world happening relating to CEO's acting unethically. The article comes from New Zealand where the CEO of a company received a salary package of $5.59 million, which was the largest in New Zealand corporate history. This package has been described as unethical because the economy is struggling and average workers have had zero or limited growth in their own salaries.
This topic has raised concern in New Zealand for the need for executive salary controls. This article interested me because of the global aspect of it. It shows that CEO's all over the world are acting unethically and the talk of regulations is becoming more and more popular.
Does anyone have an opinion on regulations for CEO salaries? Should they exist?
-Kyle Turner
This is an important global topic!
ReplyDeleteThe big question concerning salaries is if the salary is linked to the performance. Have the CEO done a great job, maybe he or she should have a big bonus. The problem is that it seems that the CEOs´ salaries are high regardless of the performances.
I´m however uncertain if a regulations is the answer for the problem. How can a regulation, that most people think is reasonable, work in practice?
- Eva-Lena Juhlin
I agree with Eva-Lena. This is such an important global topic. If companies have the ability to be linking the highest salaries, they need to look at the organizational structure of the corporation. If the lower-level employees are not receiving the wages or respect for their position, the salary packages of higher level management should be looked over again. CEO's are especially important to an organization, but without the foundation of the employees, there would be no company.
ReplyDeleteI do believe that there should be some kind of regulations on salaries considering we are seeing more and more problems surrounding the issue of unethical CEO's in companies because they have more power than they are able to handle.
-Lauren Mowers
I agree to a certain extent with your post Lauren, but I also think that CEO's salaries should be capped in certain situations. Take for example all the bankruptcies and government bailouts where the CEO's were still making millions of dollars. Yes, most CEO' should make large salaries, however it is the ones who take the high salaries at the expense of their struggling companies that make it worth looking at capping salaries. I wouldnt say cap the salary based on a certain dollar amount, but maybe on gross profit for a year. Might not work amazing in every situation, but it would be better than CEO's putting their companies into debt.
ReplyDeleteLast comment was by Ryan Schaumburg
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteI can see both sides to this argument. However, I do believe CEO salaries should have a cap. If a company is filing for bankruptcy and laying off thousands of workers, then their CEO should not be getting paid millions of dollars. If a company is profitable and doing well, higher CEO pay is more justified. I just do not believe it is right for a CEO to be making millions and millions of dollars when others are losing their jobs.
ReplyDelete- Kelly Moran