Overview
In 2016, CEOs of S&P 500 Index companies received an average of $13.1 million in total compensation. In contrast, production and non-supervisory workers earned only an average of $37,632—a CEO-to-worker pay ratio of 347 to 1. Some say that this wage gap creates a demoralizing corporate culture and morale of the general workforce of an organization. As a result, a group of top CEO's have joined the "Dollar a Year" club. These CEOs have been able to skirt around the issue by choosing to forgo a lofty salary and opting instead for a paycheck of around $1 a year, or less.
Of course, this isn't to say these executives are living off the dollar menu.
The CEOs on this list are still worth millions, if not billions — but while some merely pay lip service to the $1 salary club by taking home hefty compensation in the form of company stock awards and bonuses, others forgo adding to their wealth in this way entirely.
Check out this Forbes article prior to making your initial post. 13 Top Executives that Ear $1 or Less.Links to an external site.
Some say top executives are being overpaid. Especially because some of the best-performing CEOs aren’t the highest paid, and others get large raises even when the companies lose money. However, not everyone agrees. In capitalist countries, talented CEOs, like in pro sports, are entitled to fetch their price, as most compensation is geared toward results. Top executives should be paid multimillion-dollar compensation packages; after all, if it weren’t for effective CEOs, companies would not be making the millions of dollars of profits they make each year. CEOs deserve a piece of the pie they help create.
Discussion Prompts:
- Do executives deserve to make 335 times more than the average worker?
- Is it ethical for managers to take large pay increases when laying off employees?
- Are companies being socially responsible when paying executives premium compensation?
- This is a capitalistic country where people chase the American Dream and success.
- Why should anyone's ability to make money be limited?
- What do you think of the $1 a Year Club? Is it legit or just a scam to look better to the public?
The initial post of 300 words is due before midnight on Thursday. Two (2) 150-word reply posts to classmates that responded to your initial post are due by midnight Sunday. Use the chapter concepts and terminology in all posts to demonstrate knowledge. Each post is required to be unique and add something significant or substantial to the discussion. For that reason, I AGREE type posts are not acceptable submissions. Posts should demonstrate critical thinking. proper spelling, punctuation, grammar and paragraphs are expected. Please refer to the Guidelines for Discussion Forum Posts in the START HERE MODULE or the Syllabus for complete requirements.