Executive Bonuses Essay

Executive Bonuses Essay

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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...

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...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. .

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