Are American Ceo's Overpaid? - Are American Chief Executive officers Overpaid?

Are American CEO's Overpaid?

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ARE AMERICAN CHIEF EXECUTIVE OFFICERS OVERPAID?

There has been much debate about American CEOs' pay and to discuss this claim we have to look at several issues. Like many other CEOs globally, US CEOs make many more times money what the average worker makes in 1980 they made 40 times the regular worker makes yearly and today they make 433 times the regular worker this is according to the video by MicasaMiDinero. US CEO makes a lot of money yet there companies do poorly in the market, just like playing in a kiddy soccer team are some of these managers. The video further explains how James Tobin, Boston Scientific CEO; Kevin Share, CEO Amgen; and Angelo Mozile, CEO Countrywide, earned a lot of money yet the companies they head performed poorly actually the later is under federal investigation.

It is true US CEO's are overpaid because it is not fair that a manager earns 433 times what a regular worker makes. In the video by Randy Rant he says that CEOs are not overpaid because the nature of the job done by them is so taxing in terms of stress, compromising family life for the job and making valuable sensitive decisions for the company. It also indicates that education level, experience and past performance determine CEOs pay. It may sound true but even so why the three have mentioned CEO's been performing poorly yet they have a wealth of experience and good education. Some CEOs have hired corporate compensation consultants then fired them when they failed to give them a good compensation package. CEOs paid to fail are many, and this is why the shareholders have taken a responsibility to approve CEO s salaries.

The CEO's job is not an easy job they make all the decisions for the firm and sometimes it is every hard to reach a decision. There is no training that managers undergo for successful managerial duties in those big companies; furthermore they are given those responsibilities on merit. There is no CEO who plans to fail; only that things turn out that way wrongly not as planned. This job involves high brain work according to Randy's video. All blame is on the CEO, anything that goes wrong in the company is him and it is a lonely job especially when it comes to convincing the board and outside stakeholders about an important decision one is about to take for the company. This is because this people don't think the same way as the CEO. A manager requires a broad set of skills and therefore US CEO are not overpaid they get returns on what they offer only that several factors including economy and market trends affect their decisions and