American CEOs Research Paper Example | Topics and Well Written Essays - 1500 words

American CEOs - Research Paper Example This is because the public is concerned that unfair CEO compensation can lead to disproportionate distribution of wealth. This paper argues that outrageous CEO compensation can result in depriving the shareholders, force the workers to accept reduced pay and lead to an imbalance which could be unsustainable in the long run for the organization as well as for the shareholders. The different forms in which CEOs were compensated have evolved over the years. In the 1980s the CEO compensation comprised mainly of cash salary and bonus with only 30% CEOs being granted the stock options. By 1994 options became a major component comprising of 70% of the CEOs receiving new option grants (Core, Guay and Larcker, 2003). Stock options thus became a major component of the CEO equity incentives. Theories have been cited to explain the CEO pay packages but according to Otten (2208) the executive pay packages are set by â€Å"simple† economics. It is often believed that the CEOs need to be com pensated for the risks they take and hence the market forces set the packages. Qualified professionals are few and hence valuable. They have to be offered incentives as they take on additional risks for value-increasing decisions, it is argued. Compensation takes various forms such as bonuses, shares and option grants. In other words, Otten argues, they are paid by performance and based on experience and seniority. If CEO pay could boost firm performance then imbalance would not occur but there is no support in empirical studies that there is a link between corporate financial performance and executive pay. Professor Kaplan argues that CEOs are underpaid and their compensation is based on the stock performance of the company. Walsh (2008) counters this stating that it is difficult to ascertain whether the CEO has been paid for his own performance or for his predecessors. Besides, the stock prices are always industry-adjusted and do not reflect the actual performance of the company. Since compensation is based on level of seniority and qualifications, the CEOs take home much more money than an average American worker (Walsh, 2008). The disproportionate distribution of wealth is evident from the fact that in 1980 the CEO made 42 times the average worker’s salary. This ratio increased to 107 in 1990 and 525 in 2000. The top 1000 CEOs took home 7% of their sales in 2005 which collectively amounts to Bolivia’s GDP, says Walsh. The Director compensation at Enron was $380,619 in cash and stock, which was the seventh highest director remuneration at that time (Brick, Palmon & Wald, 2006). Locke (2008) contends that the average workers’ pay adjusted for inflation increased by only 4.3% while the CEO compensation increased by 298 percent. While the median US salary in 2008 was $36,140, the CEO of Washington Mutual earned $5.8 million; the CEO of Boeing earned $19 million while a Church Facilities Manager earned $42,000. The imbalance is further endo rsed by Baker and Fung (2002) who argue that the wages of workers have been declining since the 1980s while the CEO pay has been increasing. Even before taking into account the value of stock options and bonuses, the CEOs in the US received compensation that was twice as high as any other nation. There is no evidence that the CEOs of the US firms are more productive than the CEOs of other nations. The markets know that the true cost of CEO is deliberately hidden (Baker & Fung, 2002).

Global Technology Workforce Management Essay Example | Topics and Well Written Essays - 1500 words

Global Technology Workforce Management - Essay Example to provide data flow to take decisions of the bases of narrow characteristics available form international databases iv. List of methods for gaining and sustaining global technology leadership. Transnational IS development Staff training Update of resources Systems originally (intended to be sustain global technology leadership); Technologies deployed as individual solutions or as a part of an enterprise-wide HR information system (HRIS). (Johnson, 2005). Global technology supply chain as it relates to Technology Globalization i. Identify the advantages and disadvantages of a technology enabled global supply chain. Advantages: It integrates the supplier, distributor, and customer logistics requirements into one cohesive process. It links processes such as procurement or logistics, to supply goods or services from source through consumption. It makes more efficient the company's internal operations; It reduces inventory costs by asking suppliers to put off delivery of goods; It integrates demand planning, forecasting, materials requisition, order processing, inventory allocation, order fulfillment, transportation services, receiving, invoicing, and payment. It allow a company to deliver goods more rapidly to the customer Disadvantages: high cost of software solutions are very different from buy-side and sell-side perspectives. Security of data cannot be guaranteed by both sides ii. Address security concerns in deploying global technology solutions Data security ensure that valuable business data files on either disk or tape are not subject to: virus protection data protection unauthorized access unauthorized change Destruction (McNurlin, Sprague, 1997). Global... Systems that allow on-line inquiry and reporting must have data files secured. One set of users consists of all employees who perform clerical functions such as inputting employee data into the system. All individuals with this type of profile can update the system but can neither read nor update sensitive fields such as salary, medical history, or earnings data. Another profile applies to divisional managers, who cannot update their systems but who can read all employee data fields for their division, including medical history and salary. These profiles would be established and maintained by a data security system. A multilayered data security system is essential for ensuring that this information can be accessed only by authorized persons. Web pages can be constructed from bits of text, graphics, sound, or video that may come from many different sources. Each item may belong to a different entity, creating complicated is of ownership and compensation. Global Technology involves changes to the workflow system.