Executive Remuneration Contribution of CEO

Question: Discuss about the Executive Remuneration for Contribution of CEO. Answer: Introduction: Studies conducted by Pash in 2006 found out that the securities exchange paid Ardent Leisure CEO bonuses despite the death of four people at Dreamworld. Ethically, payment of such bonuses when a company is mourning raises eyebrows on the death of the individuals. Board of Management should therefore act with empathy towards the bereaved. Conversely, celebrities are also being paid huge sums of money to perform during sorrowful events such as burial which put them in the lame light as celebrating misfortunes of others. In the corporate world, CEOs are paid huge sums of money compared to other staffs who are the main drivers of such companies (Johnston, 2002). When there ae conferences, top executives pocket huge allowances as the staffs get peanuts. This trend has demoralized the low cadre staff who ensure that targets set by the management are achieved. However, celebrities work as individuals and their remuneration is channeled to them compared to the corporates where total output of the companies is pegged to the whole organization. On the high disparity in remuneration, we can conclude that celebrity CEOs ae paid more compared to their counterparts. Fame comes at a price where they get paid dearly to maintain the brand and fashion. Most of the celebrities are also being hired by the mainstream companies to promote their brands which justify high income of the celebrities. Performance by the celebrities is quite seasonal. In sports, for example, participants do work during certain months of the year or during major competitions and remain free most of the time. This scenario explains why they get the highest compensation upon participation compared to corporate who works throughout. Bibliography James Johnston, 2002,Understanding executive remuneration: the contribution of CEO work histories, Management Research News, Vol. 25, Iss 12 pp. 68 - 73 Pash, Chris, 2016, The CEO, her bonus and the Dreamworld Tragedy, Business Insider Australia, October 28.