What is your view on executive compensation? Is it too much? Is it justified?
In its annual issue on executive compensation Forbes magazine in 2007, reported that “the chief executives of America’s 500 biggest companies got a collective 38% pay raise last year, to $7.5 billion.” Leading the pack was Steve Jobs of Apple, Inc. with total compensation of $646.6 million. CEO’s pay has been a hot topic for the last couple of years and looks to continue to be in the news. University presidents are now also getting in the news with many of them earning in excess of $1 million annually with expense accounts as high as $700,000.
What is your view on executive compensation? Is it too much? Is it justified? Is it the result of the CEO appointing friendly colleagues to the board who willingly support pay increases for their friends? Is it simply the free market at work?
What do others say about CEO’s pay? Cite at least one credible external reference on each side of this issue in stating and justifying your position.