1. We have heard a lot in the news how people feel upper management and executives are highly overpaid. Do you agree or do you feel that it is o.k. to pay high amounts of wages and bonuses to the top people?
2. Do you think that upper level management and executives are more likely to get fired in times of trouble for the company?
3. Very often managers just make standard salaries and often aren't bonus based but can be, it just depends on the set up of the company. Do you think these pay levels are ever equal? Why or why not?
4. Very often there are politics behind some of these types of decisions and might not be the best to vote them out. Do you think that it is realistic for a company to have incompetent management? Why or why not
5. Can you replace board members anytime or is that just done annually?
1. While I agree that they should definitely be paid very handsomely, I do agree that they are paid too much. These exorbitant amounts do cut into profits and costs. Even though it has become more competitive, I feel the equivalent average wage (when compared to the average worker) should be more in line with what we saw in the late 1970s or early 1980s. This of course would be ...
An expert provides his opinions on and reasons for his feelings on executive pay, incompetent management, dismissal of board members and dismissal of senior management. 275 words answer 5 questions.
Senior Management Compensation
1. Compare typical compensation and incentive arrangements for (a) top management, for example, the CEO or CFO, and (b) plant or division managers. What are the chief differences
2. Suppose that East Corporation has issued voting and nonvoting stock. Investors hope that holders of the voting stock will use their power to vote out the company's incompetent management. Would you expect the voting stock to sell for a higher price? Explain.