Is CEO Compensation justified by Performance?
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Is CEO Compensation justified by Performance? Yes or No. Which view do you agree with and Why? Explain. Reference at least two outside resources that further support the view point you side
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Solution Summary
The solution answers empirically whether CEOs salaries are justified by their performance. It analyzed using the salaries of 20 CEOs as against company efficiency index.
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CEO Pay
The job description of a CEO means meeting the needs of employees, customers, investors, communities, and the law (Robbins, 2013) and the job needs focus and dedication.
As the head of the organization, the CEO has the overall control of the company and can be blamed for any errors and/or omissions.
Forbes (2013) compiled list of CEOs with their annual salaries and efficiency index for 2012.
Based on the Forbes list, you can analyze the top 20 CEOs with salaries and performance data (see the attached file for the table).
To answer the question whether the CEO Compensation were justified by Performance, correlation ...
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