LEGAL ENVIRO PAPER

LEGAL ENVIRO PAPER - How much is a single person worth...

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How much is a single person worth? Should a person’s worth be based upon how well their company is profiting, or should it be based upon their importance in society? If society based one’s wage on the risks of their jobs or how important they were, miners, bridge builders, teachers, and soldiers would be making the most money . This isn’t how our society works however . Is Michael Jeffries, Abercrombie & Fitch’s CEO, worth $71 million dollars a year even though his company’s stock has significantly dropped more than 71% last year? His fellow executives and he feel that paying him 75% more than his rivals is worth it because he possesses the individual skills and abilities Abercrombie & Fitch desires despite its economic downturn . Is it right that Michael Jeffries enjoys a salary many times greater than the employees that work for him? 1 Joe Girardi, the second year manager of the New York Yankees, is practically the complete opposite . Girardi’s compensation is agreed upon by George Steinbrenner, owner of the New York Yankees, with himself and possibly with the help of his agent . He gets paid roughly $2 million a year regardless of all the success he has established this year for his team . Even with the bonuses he will receive, he will still be earning a paycheck much less than the 1 Rooney, Ben. "5-most-overpaid-ceos.html: Personal Finance News from Yahoo! Finance." Business Finance, Stock Market, Quotes, News . Yahoo, 28 Sept. 2009. Web. 19 Nov. 2009. <http://finance.yahoo.com/career-work/article/107831/5-most-overpaid-ceos.html?mod=career- leadership>.
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. 2 But really how much should someone with all that power be paid? In the business world today, there are too many instances where we find that executive pay amounts are excessively high . Many of these companies that are paying outrageous wages to their executives are either losing profits or getting aid from the government because of bankruptcy . American International Group is a victim of this . Last year the government bailed out AIG paying $170 billion dollars to keep this company alive . More than $500 million dollars of this was in salaries and bonuses paid to the executives . 3 Bank of America is another well known organization that has an overpaid CEO and a failing business . Kenneth Lewis, the 2 Feinsand, Mark, Bill Madden, and Christian Red. "Yankees to name Joe Girardi manager." New York News, Traffic, Sports, Weather, Photos, Entertainment, and Gossip - NY Daily News . 29 Oct. 2007. Web. 19 Nov. 2009. <http://www.nydailynews.com/sports/baseball/yankees/2007/10/29/2007-10- 29_yankees_to_name_joe_girardi_manager.html>. 3 "American International Group Case Study." Aflcio.org - America's Union Movement 19 Nov. 2009. <http://www.aflcio.org/corporatewatch/paywatch/retirementsecurity/case_aig.cfm>.
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LEGAL ENVIRO PAPER - How much is a single person worth...

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