High Paid CEOs Essay Example | Topics and Well Written Essays - 1000 words

High gainful CEOs - Essay ExampleMost of the CEOs get their break with many components. These may include monthly salary, bonuses, blood line options, and others. Quite often, when we look at the data regarding the compensation of CEOs, that data includes in itself the expected value of downslope options, which is usually much higher than the current value and is set up the board of directors anticipating the performance of the fraternity (Kay & Putten, pp. 59- 61, 2007). In addition, many CEOs have a considerable amount of their compensation in form of rail line options and that is not liquid neither does the CEO walks away any morning with his stock options. Therefore, the liquid property or variable salary that the CEOs receive is often much less than what we see and hear with various sources (The Economist, 2010). Most critics of the CEO pay often forget that like any other employee of the company, the pay of the CEO is decided by looking at his job description, the sensi tivity of his job, the authority, task significance and the fortune associated with it. Quite understandably, the job of a CEO is tricky and a risky one because history has witnessed revolutions in companies due to great CEOs and destruction of many companies as well due to incompetent. Besides, if we look this issue from the crystalline lens of a bare market economist then this issue would cease to exist. These high salaries of CEOs are something, which the free market has come upon through market mechanisms and market driven forces (Beauchamp, Bowie & Arnold, pp. 158-159, 2008).