Abstract ........................................................................................................... iiiIntroduction ..................................................................................................... 1High Pay Seems Small When Compared To Company Profits .......................... 2Top Executives Are Under A Lot Of Pressure .................................................. 3US Executives Paid Three Times More Than Other Countries For A Reason .... 4Pay Should Reflect Performance ...................................................................... 5Conclusions And Recommendations ................................................................ 6Notes ............................................................................................................. 8Bibliography ................................................................................................... 9ii ABSTRACTThis report explores the issue of the pay that top executives make, and the reasons whythey do. It also suggests improvements that can be made to make the system better.High Pay Seems Small When Compared To Company ProfitsMany companies pull in profits that are extremely high. When an employee of such acompanies salary is compared to the amount of profit that the company earns, it starts toseem reasonable. It only makes sense that if the employee is directly responsible for thesuccess of their company, then they deserve to get their payback. It seems ironic, butmany salaries even look small once compared with a companies profits.Top Executives Are Under A Lot Of PressureBeing the CEO of a company is not an easy job. There is all kinds of pressure for a personin 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 wayto compensate these employees for the tremendous strain that their job puts on them. I...
