Executive Bonuses Essay

Executive Bonuses Essay

Length: 902 words (2.6 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

In Corporate America there are organizations that pay their executives bonuses. In addition to, the six figure annual salary that most of them earn. The past few years the country has been going through a recession, many people are unemployed and in need of a job and many companies are still downsizing. Therefore, I do not think it’s logical for a company to payout such large bonuses to executives. Companies should be more socially responsible by creating jobs for some of the unemployed and distribute a portion of the money to executives in bonuses. The three issues I have regarding executive bonuses are: What is the bonus structure for executives, why does the board of directors approve such large bonus payouts, and how often are these large bonuses disbursed?
Matthew Boyle of BusinessWeek’s Management IQ blog, brought to the attention regarding Coca-Cola, what the board of directors said. That as of 2008 and the years beyond bonuses for executives will be awarded on a discretionary basis only, no longer to a certain formula; this was said to the Securities and Exchange Commission. Although, the SEC made it a requirement that businesses disclose their bonus formula, Coca-Cola chose to accept the consequences by not disclosing. (www.itbusinessedge.com) Since a company such as Coca-Cola chooses to pay a fine rather than reveal the company’s bonus structure for executives. I question if the board of directors is hiding something more than the company’s business strategy from competitors. (www.itbusinessedge.com) “In today's climate where transparency and accountability are prime concerns, investors need to know what those bonuses are based on.” (www.itbusinessedge.com)

Why does the Securities and Exchange Commission have to kn...


... middle of paper ...


...es, News. 07 Feb. 2011. Web. 07 Feb. 2011. .
Gordon, Marcy. "Theoaklandpress.com." The Oakland Press : The Best Place for News in and around Oakland County. 07 Feb. 2011. Web. 07 Feb. 2011. .
"Health News." Ethiopian News and Opinion Journal. 31 Jan. 2011. Web. 07 Feb. 2011. .
OPPapers.com, Joining. "Bank Executives Bonuses - Research Paper - Txviper." Free Term Papers, Research Papers, Essays, Book Reports | OPPapers.com. Web. 07 Feb. 2011. .
Wastler, Allen. "Is It Time to Can Wall Street Bonuses?" CNBC. 30 Jan. 2009. Web. 07 Feb. 2011. .




Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Bonuses and Investment Bankers Essay

- Should bonuses be paid to employees of companies which almost went bankrupt but didn’t because the company took bailout money from the government. Most bankers say yes, yet to the general public, this seems to be absolutely inexcusable. I decided to look into this topic further to satisfy my curiosity. The large banking businesses are in many ways at blame for the current recession. They lobbied for, and got, the relaxation of rules limiting how much debt they could have. By going into greater debt, they could increase their profits....   [tags: Executive Compensation]

Better Essays
885 words (2.5 pages)

The Relationship Between Executive Compensation And The Sustainable Future Of The Respective Organizations

- The main objective of this study is to Identify and analyze the relationship between executive compensation and the sustainable future of the respective organizations as a result of granting these compensations. This is considered in a broader scale where not only the company but also the employees and the stakeholders of the company are considered. Before proceeding into details it is worthy to understand what an Executive compensation is. Executive compensation or executive pay is composed of the financial compensation and other non-financial awards received by an executive from their firm for their service to the organization....   [tags: Management, Executive compensation]

Better Essays
730 words (2.1 pages)

The Evolution of Executive Compensation from The Early 20th Century to Today

- The Evolution of Executive Compensation from The Early 20th Century to Today Executive compensation has been studied for many years. While the average person probably does not think about it on a daily basis, it is necessary to watch trends. Tracking the amount of money they make as well as the bonuses, stock options, and other benefits shows how these executives are making such high rates of pay compared to the ordinary worker. Tracking how much an executive makes began in the 1930’s. Since this time not only has it been tracked but there have been many changes in the type of tracking, the tax laws and what is available as compensation....   [tags: executive pay, customization, differentiation]

Better Essays
922 words (2.6 pages)

Executive Officer : Board Of Directors Essay

- Oddly enough every public company must elect a Board of Directors, meanwhile it is optional for private companies. Generally, Board of Director members are stockholders or individuals elected by shareholders to sit on the board. These individuals might be known to the Chief Executive Officer (CEO) or existing board members. Usually when this is not the case companies might outsource finding candidates by utilizing an executive search firm to ensure they are obtaining the best of the best to meet their needs....   [tags: Corporate governance, Management, Corporate title]

Better Essays
1216 words (3.5 pages)

Essay on Overview of Executive Compensation in United States

- This paper will fundamentally provide a substantive evaluation of how executive compensation correlates with the firm’s performance in the listed corporate firms in the United States. Equally important, such firms which are the beneficiaries of the public funding are entitled to expressly owe the public authorities the obligation to regulate the executive compensation levels. The paper will also delineate the regulatory approaches in U.S. along with the issues facing the executive compensation since the start of the dramatic economic crisis....   [tags: Corporate Governance, Economic Crisis]

Free Essays
3033 words (8.7 pages)

A Perspective on Corruption: A Look at Executive Compensation Essay

- In the West, practiced corruption is usually portrayed as a pertinent part of life in the developing world. In these so-called developing states, corruption is often deliberate. However, it does exist in the West in more covert forms. In an interview by Amy Goodman and Juan Gonzalez of Democracy Now, Chuck Collins of the Institute for Policy Studies was being asked to elaborate on unequal monetary situation of the United States. The questions asked included the senior executive bonuses versus taxes paid, tax dodging by corporations, costs of lobbying, offshore deposits/profits, and the changes to worker pay ratios over the last two to three decades....   [tags: Business Ethics]

Better Essays
1119 words (3.2 pages)

Essay on Agency Theory Is Used to Explain Executive Pay

- ... When equity-based incentives are combined with performance bonuses tied to accounting measures, the executive's own wealth is implicitly tied to outcomes that produce shareholder value. Due to moral hazard, that is, the inability of principals to observe the actions or behavior of an agent, incentives linked to outcomes can counter this issue. An emphasis on incentives in the principal-agent model reflects an important trade-off inherent in the principal-agent model. Executives that are comfortable taking risks will be motivated by incentives....   [tags: incentives, benefits, risks]

Better Essays
1252 words (3.6 pages)

Essay on Preserving Capable People Through Incentive Plans

- The major objective of incentive plans is to preserve a company most capable people. In order to maintain the competitive edge, companies have to award incentive plans and bonuses that are similar or greater than other companies. The retentive of the best talent is merely a one benefits with offering incentive plans, when employees receive incentive for their work production tend to increase along with the company’s profits. This author can remember when his former company offered profit sharing for achieving production and it was motivation to do better job....   [tags: bonuses, stock option]

Better Essays
1189 words (3.4 pages)

Executive Compensation Essay

- For Sunan Pty Ltd to have a successful float, a detailed and well thought out compensation governance needs to be developed. The following recommendations have been built create a compensation package to help maximise shareholder interest for Sunan Pty Ltd. PRINCIPLES OF REMUNERATION Remuneration packages should be created to attract executives capable of motivating people, communicating a vision, and leading a company to success to achieving long-term shareholder value ***** Remuneration packages should reward success over short and long term periods with an emphasis on the long term ***** Remuneration packages should be fair to all stakeholders of the business REMUNERATION COMMITTEE T...   [tags: Business Compensation Payroll]

Free Essays
1211 words (3.5 pages)

Sony Corporation Executive Summary Essay

- Sony Corporation Executive Summary Sony's current financial difficulties are tied into its corporate culture which were stated over 30 years ago. With such a large multinational corporation, greater planning and more use of strategies should be pursued. Sony could start with the implementation of a new mission statement, with profit and benefits of the company tied more closely to everyday operations. Internally, the four forces, the management, the designers, the production and the marketing should achieve better communication and cooperation....   [tags: Sony Business Marketing Essays]

Free Essays
3068 words (8.8 pages)