加拿大essay代写-Executive compensation 。In most of the big organizations across the globe the salary of the executives at the higher level of the hierarchy for instance, the CEOs (Chief Executive Officers) and CFOs (Chief Financial Officers) mostly dependent on the performance of the companies and also depends upon the market standards (Frydman and Saks, 2010). In times of good economy of a nation, most of the high profile and multinational companies (MNCs) are fighting to hire better performing executives; they allure them by paying huge salaries and bonuses based on their performance.
One of the best ways to protect the interests of shareholders during economic crisis is to cap the pay of the CEOs. But it actually contradicts with the free economy principle which completely depends upon demand and supply. The capping policy will also be highly criticized during good economy; as it will limit a firm’s capability to hire talents that are best in the labour market. In a recent article Richard Lamptey of Mercer, a research firm stated that in the recent time with better economy competition for hiring the better performing CEOs will guide their pays. Capping might also lead to incompetent human resource allocation. So to solve the problem of executives’ pay affecting unjust pay to the shareholders; unethical steps taken by the executives to move up share price and disparity of wealth distribution in the society appeals that correct actions should be to taken correct the corporate governance practice and one must appoint independent audit members to check and restructure correct Executive salaries.
In case of perfect competition there will be self-correction done where employees and executives will be paid as per their marginal product. Though the market is a place of imperfect competition, control is essential so that executives are paid as per their contribution towards their organization (Frydman and Saks, 2010).
It has been observed that the salary of executives especially that of the CEOs and CFOs are much higher than that of the other employees in an organization.
Now setting benchmark for pay within a particular industry will help in the following ways:
It will prevent any form of dissatisfaction among the CEOs to perform their duty as they are going to get paid at a similar manner as that of the other executives in the industry (Holmstrom and Kaplan, 2001). The executives will be aware from the very beginning what exactly they are going to get if they enter a particular industry. So, according to Herzberg’s two factor theory (1986) the executives will get all their motivational factors in place to perform their job in a better manner as they are clear from the very beginning what exactly they are going to get as pay when they enter a particular industry. On the other hand the Hygiene factors will also be maintained as the executives know that all the other companies within the industry have similar pay structure and chances of shifting from one company to the other within the industry just because of better pay will not be there (DiPrete, et. al., 2010).
加拿大essay代写 -Executive compensation 。 全球多数大型组织高管的薪水更高水平的层次结构为例,ceo(首席执行官)和cfo(首席财务官)主要依赖于公司的表现,也取决于市场标准(·弗莱德曼和萨克斯,2010)。在一个国家经济繁荣时期，大多数知名跨国公司(MNCs)都在努力招聘表现更好的高管;他们根据员工的表现支付高薪和奖金来吸引他们。
在完全竞争的情况下，将进行自我修正，根据边际产量支付员工和高管的薪酬。虽然市场是一个不完全竞争的地方，但控制是至关重要的，因此高管的薪酬取决于他们对公司的贡献(Frydman and Saks, 2010)。