Do you think U.S. executives are compensated too highly? Why or why not?© BrainMass Inc. brainmass.com October 2, 2020, 4:52 am ad1c9bdddf
In my opinion, the key word is reasonableness. There are several different factors that have to be taken into consideration when setting executive compensation. On average, no, I do not think U.S. executives are compensated too highly, as long as their compensation is not running the company into a net loss. If the company is incurring a net loss, the investors feel that loss, and the executives are then bound (in my opinion) to practice sound corporate governance and decrease their salaries in a reasonable amount, so as to try and avoid a net loss.
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This solution discusses the level of compensation for U.S. executives. A comprehensive discussion is provided.