With the increasing pressure following the recession, is CEO pay a Dissertation

With the increasing pressure following the recession, is chief executive officer relent a justifiable way of rewarding CEOs A contrast between the UK - Dissertation ExampleThus, with the aim to respect the difference in the CEO payment structure in the US and the UK, three objectives were set. Data was collected through previous academic papers and studies. The theories on CEO pay are disjointed and competing against each other. At the same time, the study in addition cave ins that there is no consensus on what should be taken as fair pay. As the business environment changed, the macro-economic factors influenced CEO pay. Incentives were needed to attract and retain talent it was also necessary to be comparable with the peer group. All these led to excessive CEO pay which apprises tender corporate governance structure and lack of management control. Firms could find loopholes even in regulations and codes of conduct. Statistics also reveal wide disparities in CEO pay and the workers pay. There is no consensus on the benefits of linking performance to pay and it has been apply to suit individual conveniences. A comparison of the practices in the US and UK reveal certain differences. More of assume extraction practices can be found among the US loadeds where shareholders and investors have little knowledge of the firms operations. However, in the UK the shareholders are involved in say to pay and the decisions are collaborative. ... ories on CEO allowance 5 2.4 CEO stick out history and current trends 7 2.5 Market Forces or Drivers of CEO allowance 9 2.6 Debates on the upward trend in CEO pay 11 2.7 CEO equity-based grants and firm performance 14 Chapter III Methodology 3.1 Chapter Overview 16 3.2 Research Phenomenon 16 3.3 Research Design 16 3.4 Research Methodology 16 3.5 Data Collection 17 3.6 Sources of Data 17 3.7 Data epitome 18 3.8 Ethical Concerns 18 Chapter IV Findings and Discussions 4.1 Chapter Overview 19 4.2 Agency Theory versus Rent Extraction 19 4.3 Forms of Compensation 19 4.4 Say on Pay 22 4.5 Pay for Performance 23 4.6 Pay Disclosure 24 Chapter V Conclusion and Recommendations 5.1 Conclusion 27 5.2 Recommendation for improving CEO pay 28 5.3 Limitations 29 5.4 Areas for further research 30 References 31 Appendices 34 Chapter I Introduction 1.1 reason Executive pay or chief executive officer (CEO) has come under heavy test particularly following economic recession and financial turbulence. Demand for restricting or regulating CEO pay or the issue of fat cats (Lin, Kuo and Wang, 2013) comes in times of economic crisis (Dittman, Maug and Zhang, 2011). Blinder (2009) refers to the incentives built into the compensation plans of many financial firms as perverse and attributes the financial crises to these perverse incentives (cited in Lin, Kuo and Wang, 2012). CEO pay has legitimate enormous attention not just from the academics but also from the press (Gao, Harford, and Li, 2012). Every other solar day medi a reports of the excessively generous pay packages although there are diverse opinions over the pay packages granted to the executives. These arguments suggest that there is little correlation between economic conditions and executive pay. The CEO pay was subject