Compensation Term Paper:
Executive compensation is the complex of wages, salaries and bonuses paid for the executives of the company for their work in the organization. It is natural, that the owners of big companies and corporations have to work hard to achieve success and maintain the gradual development of their company and the price for this work is high.
Common employees are supposed to be unable to brainstorm the bright ideas which can improve the condition of the company and as a result only the executives, vice presidents, presidents and others receive extra money for their work in the form of the enormous bonuses. Executive compensation is often treated negatively among employees who generally do not receive any bonuses. The presidents and other executives of the companies take advantage of the increased salary, insurance, constant bonuses and all their expenses (trips, conferences, etc) are financed by the company.
Of course, the common employees do not have such privileges and they complain that the executives waste enormous sums of money which influences the wages of employees negatively. Many countries and corporations have decided to make the special rule and norms which would regulate executive compensation, because if much money is paid to the president, there is not enough money for the appropriate salary for the employees and the development of the company. Special boards and societies struggle for the equal distribution of the profit of the company and limit the executives’ enormous profit somehow.
Executive compensation is the compensation of the executives expenditures on the company form the firm’s capital. On the one hand, the process is logical and fair, because the executives have the right to operate and use the certain sums of the company’s money if they have made a considerable contribution into its development. On the other hand, if the process is out of control, the finance of the company can be used in the barbaric and irrational way. In order to research executive compensation term paper one should look through the reliable sources and collect the trustworthy facts about the topic. One should explain the meaning of the executive compensation and its major types, pluses and minuses. The student is expected to evaluate the problem from the professional point of view and define the objective effect of this policy on the condition and prosperity of the company.
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