Executive Compensation and The Free Market System Essay

Executive Compensation and The Free Market System Essay

Length: 1092 words (3.1 double-spaced pages)

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Many academic institutions, such as Cornell University and the University of North Carolina,
define an argument is a main idea, often called a claim, backed up with evidence that supports the idea.
The purpose of this paper is to analyze arguments made by Mr. R. Thomson about the excessive
executive pay and weather he succeeded in presenting a clear and convincing argument.
Mr. Roger Thompson is Editor of the HBS Alumni Bulletin. In his article “Excessive Executive Pay:
What’s the Solution?” Harvard Business School, he raises a critical economic issue about the relationship
between the recent economic meltdown and the excessive executive pay. He also proposes a set of
solutions to solve the current crisis and prevent another from occurring. Mr. Thompson does not think
that executive pay practice itself had a role in creating the financial meltdown. Furthermore, he thinks
the huge compensation plans with incentives led to the financial crisis. Mr. Thompson develops a solid
argument about the excessive executive pay by presenting evidence to support his claim, using
counterargument of others who disagree with his position, and by showing deep understanding of the
issue. He analyzes the issue from many perspectives: government perspective, Chief Executive Officers’
perspective, research perspective, and academic perspective.
Evidence and Counterargument
The author starts by explaining how the government got involved with the financial sector by
providing billions of dollars to large financial companies, such as AIG. The author claims that the White
House and congressional leaders are trying to shift the balance of power away from executive
management. The author...

... middle of paper ...

...d enhance the communications channels with the senior executives. I certainly agree with Mr.
Marshall, a research associate from the center for research on globalization, when he stared: “ultimately
everyone is responsible in a position of power. Together they have all accumulated this bad debt”.
(Marshall, 2010)

Works Cited

D. Teather: The Guardian, US executive pay goes off the scale. Retrieved Feb 10, 2011 from: http://www.guardian.co.uk/business/2005/aug/04/executivesalaries.executivepay2
Bolton, P., Mehran, H. and Shapiro, J. (2010): "Executive Compensation and Risk Taking”. Retrieved Feb 11, 2011 from http://www.newyorkfed.org/research/staff_reports/sr456.pdf
Andrew Marshall. Retrieved Feb 09, 2011, from http://www.globalresearch.ca/
Roger Thompson. (September, 2009). Excessive Executive Pay: What’s the Solution, Harvard Business School.

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