Fall 2009 Do CEOs Deserve Their Pay?

CEOs Deserve What They Get

This article, written by Professor Robert M. Daines of the Stanford Law School, touches on the issue of how to justify the pay of CEO’s. The article talks about the research done in order to see whether the skill of CEO is related to the skill that they have in managing a company. Professor Daines found that highly paid CEOs are in fact more skilled when firms are small or when the CEO has relatively greater ability to affect the firm's performance. Also he found that highly paid CEOs who operate in large firms subject to environmental constraints perform worse than their more poorly paid peers. http://www.law.stanford.edu/publications/stanford_lawyer/issues/72/CEOPaySkill.html

This article basically talks about how CEO pay is not going to change at all in the near future. People just have to deal with the unfair pay and get on with their lifes.http://find.galegroup.com/ovrc/retrieve.do?subjectParam=Locale%2528en%252C%252C%2529%253AFQE%253D%2528su%252CNone%252C7%2529ceo%2Bpay%2524&contentSet=IAC-Documents&sort=DateDescend&tabID=T003&sgCurrentPosition=0&subjectAction=DISPLAY_SUBJECTS&prodId=OVRC&searchId=R3&currentPosition=2&userGroupName=gonzagaufoley&resultListType=RESULT_LIST&sgHitCountType=None&qrySerId=Locale%28en%2C%2C%29%3AFQE%3D%28ke%2CNone%2C7%29ceo+pay%24&inPS=true&searchType=BasicSearchForm&displaySubject=&docId=A160167595&docType=IAC

CEOs are Overpaid

Adeleine, Baran. "High CEO Pay Is Unfair to Workers." At Issue: Corporate Corruption. Ed. Susan Hunnicutt. Detroit: Greenhaven Press, 2007. Opposing Viewpoints Resource Center. Gale. INLAN - Gonzaga University Library. 19 Oct. 2009 <http://find.galegroup.com/ovrc/infomark.do?&contentSet=GSRC&type=retrieve&tabID=T010&prodId=OVRC&docId=EJ3010462212&source=gale&srcprod=OVRC&userGroupName=gonzagaufoley&version=1.0>.

This article states that the increase in pay to CEOs of major companies around the United States is more than triple that of the pay increase for an average worker. It also was written in 2003 which alerts people to the fact that the CEOs have been being overpaid has been a problem for a number of years and should have been taken a look at much sooner than the recession we are now in. The author believes that the CEOs have been abusing their power for a long time and that Corporations in the end are very corrupt.

"American CEOs are overpaid and over-hyped'. " India Abroad  27  Sep. 2002,Ethnic NewsWatch (ENW), ProQuest. Web.  19 Oct. 2009.<http://proquest.umi.com/pqdweb?index=5&did=491140021&SrchMode=2&sid=7&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1256010376&clientId=10553>.

The author of this article strongly detests the fact that CEOs are getting treated like celebrities in America today. He believes that in the U.S., CEOs have recently began to flaunt their wealth and believes that this could be a cause of the high overpayment of many CEOs. He goes on to say that most Superstar CEOs will fail quite often because they do not focus on the company as CEOs have in the past and that they will jump from company to company to receive more money.

Ron Wolf, San Jose Mercury News.  "OVERPAID CEOS HAVE HIM TO THANK, CURSE :[3 STAR Edition]. " Orlando Sentinel  22  Dec. 1991,Orlando Sentinel, ProQuest. Web.  20 Oct. 2009. <http://proquest.umi.com/pqdweb?index=4&did=89062212&SrchMode=2&sid=9&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1256011473&clientId=10553>.

This article follows the ideals of a executive consultant who helped many CEOs to fatten their paychecks. This consultant now believes that what he did is actually hurting the shareholders and he believes that CEOs are taking this too far even at the expense of his job. The author talks of how the ideals of the consultant have changed and why he believes that the CEOs are being overpaid.