Ethics and Ceo Pay

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Running head: LEADERSHIP AND ETHICS OF CEO PAY Leadership and Ethics of CEO Pay Chief Executive Officer pay in the United States has risen dramatically. In the past three decades the salary of a CEO has risen significantly beyond what can be explained by variables such as firm, size, performance, and industry classification (Bebchuk & Grinstein, 2005). According to research, the CEO pay at the nation’s top 500 largest companies averages about $10.9 million a year. The CEOs are also receiving an additional $364,000 in perks. It was estimated that the average CEO makes 319 times more than the average worker in 2008 compared to a multiple of 42 in 1980((Anderson, Cavanagh, Kliner, & Stanton, 2005). CEO…show more content…
In conclusion, a great leader should possess certain qualities. These qualities will ensure that the leader is successful in leading himself and the organization. Integrity, respect, and moral responsibility are such qualities. CEO Pay in U.S Compared to Other Countries. Executive pay is significantly higher in the United States as compared to other countries. The United States CEOs are paid twice as much as Canadian CEOs, nearly three times as much as British CEOs, and four times as much as German CEOs. Compared to what average workers make, there is an even greater difference in pay of CEO in U.S. compared to the employee. U.S. CEOs make 531 times the pay of their average hourly employee. In comparison, British CEOs make 25 times more, Canadians 21 times more, and Germans 11 times more. Other countries such as UK, France, Italy, and Spain are moving towards setting caps on top business executive pay (Anderson, 2007). In France, the new President is working to ban golden parachutes for poorly performing executives. This is being addressed because a company in France, Airbus, gave top executives an exit pay package of excessive amounts but at the same time cutting thousands jobs of regular employees. In Germany, a government commission on corporate governance recently proposed capping executive
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