Do you feel the salaries paid to CEO's of major companies is justified?
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rank and file canada
ANSWERS: 9
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No, many of them are way too high.
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No, they make way to much money and they delegate all their work. :(
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Yes. Many of them are founders or have proven themselves to the company time and time again. Or they own large blocks of stock and so face higher risk with poorer performance. If workers or the general opublic are distressed by this, then they can get together and do something about it. But, going to far in that direction can stiffle the risk-taking that is so healthy to the the growth and innovation that drives our country. In some cases it is a reward system for a life time of a achievement. This needs to be respected. If the companies over compensate then the market will correct this one way or another.
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Sure I do. If they were smart enough and worked hard enough (because it is HARD work) to start their own company, they deserve it.
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Not at all but then again if I were in there position I would probably feel I deserved my money
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NO, as they don't do much9f the work themselves, but just feed off the companies and delegate the real work.
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Major companies are publicly traded. Shareholders are not interested in overpaying executives. People are generally paid no more than they are worth and as little as people can get away with, and that applies to CEOs too. CEOs are often company founders, that are efficient leaders of their companies. Often they ring a name recognition that is worth the money alone for legitimizing the business. In this dog-eat-dog capitalist world, everyone, including CEOs, need to justify their salaries.
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It is a problem with us humans mentality that you will take what you can when you are in control. The salaries are obscene. It is really sad to see shareholders been ripped of by these packs of wolves. However there are exceptions with people displaying constrain - three cheers to them specifically to Warren Buffet.
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Their salary usually is only one part of their compensation package. For a Fortune 500 company the salary can be somewhere around 2 to 5 million. Now they are running a 50 to 75 billion dollar company that usually spans more than one continent and involves more than one currency....very complex. (Some CEO's have actually forgone a salary while they are turning a company around to profitable status. The second part to most CEO's compensation involves stock options. These are units that allow them to purchase their own company's stock at a price above where it currently stands and they cannot purchase the shares for some time. When they buy or exercise their options they are not allowed to sell their shares for years to come. This structure usually gives the incentive for one to perform well, because the stock does not usually go up unless the company is growing at a certain level.
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