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Pay criteria
Q Do you believe most CEOs in U.S. companies are overpaid and underperform? Explain. What pay or performance criteria do you believe should be used for top-level officers in publicly traded companies?
The basic issue of overpayment of the CEO has already become more prominent after the Global Financial Crisis (GFC). Yes, I feel that the CEOs of the U.S companies are overpaid and underperformed. They fail to perform according to the expectation of the industry. The average payment of the CEO of the U.S companies has been increased since 1980s. Even it can be stated that the imbalance in the payment structure between the CEO and the normal employees contributes more to the wealth and income inequality in a statistical manner (Kaplan, 2013). At present, the financial resources are valuable in the United States. Therefore, the organizations are not interested to pay a huge money to the top executives including the CEO.
