Read Case Incident 1: The Demotivation of CEO Pay (pp. 245-246 of your textbook), and respond to the below questions.
Answer each question and question component thoroughly (at least 3-4 well-thought-out sentences that demonstrate critical thinking) and using complete sentences and proper grammar to receive full credit. Be sure to review the grading rubric and deductions at the end of the assignment. Unless otherwise noted, answers must be thorough and reflect depth of thought (critical thinking) to qualify for full credit.
Use the numbering scheme provided in your responses to clearly indicate to which question you are responding.
All information needed to respond comes from your textbook readings, lecture, and, in some circumstances, information provided in the assignment, itself. Unless otherwise noted, do not consult outside resources to shape your answers. Answer questions using only the material you read in the chapter, learned in lecture, read in the assignment, and your personal knowledge/experience/opinions. I want to know your thoughts and ideas. Evidence of the use of outside sources (including other people) beyond the approved sources will result in a zero on the assignment. Turnitin is enabled for this assignment.
Instructions: Read Case Incident 1: The Demotivation of CEO Pay (pp. 245-246 of your textbook), and respond to the below questions. The below questions are not exactly the same questions asked in the book so be sure you are answering the below questions. Note: This is an individual assignment and must not be worked on/discussed with others.
- What do you think is the ideal ratio for CEO to worker compensation? Discuss. [20 points]
- (a) How does the executive compensation issue relate to equity theory? Discuss. [10 points]
(b) How should we determine what is a "fair" level of pay for top executives (for example, what factors should be considered?)? Discuss. [10 points] - The study discussed in the case found that participants thought performance should be essential or very important in deciding executive pay. Do you agree? Discuss why or why not. [20 points]
- The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) maintains information on CEO pay. Click here to view the highest-paid CEOs (you can also search for a particular CEO): Link (Links to an external site.) (URL: https://aflcio.org/paywatch/highest-paid-ceos (Links to an external site.)). You can also view company pay ratios: Link (Links to an external site.) (URL: https://aflcio.org/paywatch/company-pay-ratios (Links to an external site.)). Choose a company or CEO you are interested in. An example answer is provided in terms of Elon Musk with Tesla, Inc. You cannot use this example to answer the question.
(a) What is the company (just provide the company name)? example: Tesla, Inc. [7 points]
(b) Who is the CEO (just provide the CEO's name)? example: Elon Musk [7 points]
(c) What is the CEO's total CEO pay for 2018 (2019, if that is what is provided) (just provide the total CEO pay)? example: $2,284,044,844 [7 points]
(d) How much of that CEO's total pay is specifically salary (take-home pay) (just provide the CEO's actual salary)? To find this information, you will need to click on the hyperlink for the company. example: $56,380 [7 points]
(e) Did the information you found surprise you? Discuss why or why not. [12 points]