Business : Executive Paycomp

Running head: WEEK 6 DISCUSSION 11Executive payNameInstructorCourseDateWEEK 6 DISCUSSION 12Executive pay is defined as the total amount that reflects into executive bank accountsand comprises of salaries earned as well as the total sum of bonuses, benefits, perquisites, andstock based compensations. Research shows that many senior executive officers in the UnitedStates earn up to 1000 times than an average American worker. This disparity also occurs in theexecutive pay list in respect to the size of the firm with senior executives from large firmsearning far much than what their counterpart earn in small firms. It is difficult to figure out howthese companies draft and implement these colossal pay packages that they give to their leaders(Core & Guay, 2010). There are various reasons as to why companies would want to pay theirsenior executives such as huge amounts of money compared to their junior counterparts. Somereasons why large companies pay their senior executive employees a lot of money include;Attract talentsLarge companies always aim at achieving a competitive advantage in order to retain theirmarket share. This can only be possible if the com ...


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