Executive responsibility
Globally the salary of the CEO’s is far above that of the non-executive minions. They also enjoy compensation levels that are extreme putting into consideration the real growth levels they have created in the corporate world (Worthington, N.p). The severance packages given to the failed CEO shows great irony by rewarding them lavishly. This is a terrible mistake to have such structure in the organization that sees the top person walk away with millions when they have wasted the company through making poor decisions (Bloxham, N.p). The multi-million packages should be more realistic in order to reduce the shocking exit from the capitalist reasoning of the CEO lavish riches to losers (Bloxham, N.p). By extending it to the top management performance of the CEO will increase performance as they will be more cautious with the decision they make. This will create a notion that hefty packages are only rewarded to the performing CEO’s and that they are not rewarded for their failure.
Executives should be held responsible for their actions as they are entirely given the powers by the stakeholders in faith that they will make the right decision that will see the firms make profits and achieve its objectivity (Bloxham, N.p). They should be charged and be held accountable and be penalized to the extent of compensating to the company if they never acted accordingly as this will serve as an example. They should be left to walk free if they are seen that the decision they undertook was for the best interest of the organization and there was nothing better they could do about it. The hefty penalty of the severance package is an effective strategy that can be used to attract top- level management personnel’s with talent. This will minimize the number of failed CEO’s as they will know that they will be held accountable for their actions.
Work cited
Bloxham Eleanoe. How can we address excessive CEO pay? April 13, 2011. Retrieved from http://fortune.com/2011/04/13/how-can-we-address-excessive-ceo-pay/
Worthington David. Costco’s CEO becomes a progressive hero, internet meme. November 28, 2012. Retrieved from http://www.zdnet.com/article/costcos-ceo-becomes-a-progressive-hero-internet-meme/
