Discuss whether or not the changes in the composition of CEO pay have been effective in increasing company performance

From this module, you have learned that it is common to have separate compensation plans for certain employee groups (e.g., sales professionals, research scientists, or executive officers). One particular pay plan, CEO compensation, continues to be a lightning rod issue for many organizations, attracting a lot of attention and media coverage. What makes CEO compensation unique and problematic? What are some options for improving the effectiveness of, and public reaction to, CEO pay?

Read the article, “The Whys and Wherefores of Executive Pay.” Then, respond to the following:

• Discuss whether or not the changes in the composition of CEO pay have been effective in increasing company performance. Justify your claims.
• Explain why there might be other alternatives that work better for long-term company growth and profitability. Provide an example of such an alternative pay option.

When responding to others, move the discussion toward a description of best practices in CEO compensation.

Things to Remember!

• Post your

primary response on the discussion board in 2 to 4 paragraphs (approximately 300 words). Justify your explanations by including in-text citations and APA-formatted references, as applicable. Read and post reply responses to some of your classmates’ primary responses (as appropriate). Also, read all reply responses to your own primary response and reply to them throughout the module (as appropriate).