Overall strategy of the organization and compensation

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For this assignment we will follow the same format as Content Debate 1. Find your assigned position statement below and craft a persuasive argument in support of that position (about 250 words).

Over time, people have often expressed mixed feelings about either the pay or severance arrangements for top executives of companies--sometimes in the millions. That is the focus of this content debate. One way that has been suggested that this might be managed is to set a limit to CEO pay as a multiple of the lowest paid employee in an organization. For example, if the lowest paid person makes 30,000, and the multiple is 10, the CEO could make a maximum of $300,000.

CEO's should be paid as much as the market dictates, without any limits. Organizations should be free to determine any severance arrangements they desire.

In answering these questions, here are some things to consider that might get you started:

1) What relationship exists between responsibility for the overall strategy of the organization and compensation?

2) What are the consequences of executive pay that ranges 100 times that of the lowest paid employee?

3) What relationship is there between CEO pay and organizational performance?

Reference no: EM131257686

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