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Effects of large executive compensation and benefit packages

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The huge compensation and benefit packages offered by many large companies to top executives are supposed to be great motivators. The question, however, is: these are motivators towards what? Are they motivators towards higher business performance or indulging in borderline to outright illegal and illegitimate financial practices?

Examine this question in the light of recent examples of charges against some corporations for illegal financial practices. Select Enron and two other companies for research on the matter.

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Within any organization, the role of upper management is to focus on the performance quality of the company and how the quality can increase sales and overall financial performance. Since we live in a capitalist society, money can be a motivator to both business performance and the pressure of illegal financial practices due to competition in the workplace and the economy in general. Companies like ...

Solution Summary

The effects of large executive compensation and benefit packages are examined.