Chief Executive Officer Compensation in the Financial...

The issue of chief executive officer compensation is the subject of dilemma in the United States. This dilemma often triggers questions as to who decides what compensation is rewarded, as well as how compensation is rewarded. The government strongly resents the current pay-ration between CEOs and the average salary of American citizens. Since the financial crisis, people have shown their displeasure with the hefty compensation chief executive officers receives. But when stunning management failures and unprecedented destruction of shareholder value are brought into the light, it becomes increasingly difficult to defend current executive remuneration policies with these economic underpinnings. For example, the â€Å"Occupy Wall Street† movement began in 2011 in protest of the increasing disparity of wealth among other reasons lying within corporate America. The peak of CEO compensation came in 2001, and it is still difficult to argue whether the financial crisis of 2008 or the change in compensation strategy has slightly stagnated the exponential growth the started in the mid 1970’s. The sentiment around the problem is whether the large banks’ CEO compensation are fair to their employees, shareholders, and the community as a whole. There is a plethora of steps to comprehend in developing how the CEO compensation debate came about. The reasons for this growth rely on bank deregulation. During difficult financial times after the mortgage crisis, arguments both for and againstShow MoreRelatedCEO Waives Annual Bonus1627 Words   |  7 Pagesone the leading supermarkets in the United Kingdom. The chain was founded in 1899 by William Morrison, with headquarters situated in Bradford, England. At the beginning of 2010, Dalton Philips was appointed Chief Executive Officer of the company. 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