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Finance Complete - Dostal Brown Kasberg Mattis Wenning 1...

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Dostal, Brown, Kasberg, Mattis, Wenning 1 Russell Dostal Evan Brown Bryan Kasberg Rob Mattis Anna Wenning Mrs. Laura Tholke Business 102 April 12, 2011 Finance Report A chief executive officer (CEO) has many responsibilities and makes many important decisions on a daily basis, but does this justify the historically high compensation levels being paid out to many executives today? Some would argue that it is unethical for the CEO to receive such a high salary. Conversely, others would argue that such great compensation acts as an incentive for employees to achieve and climb to the top levels of corporate management. For their leadership, the demands placed on them and stressful decisions they are making, one could argue that CEOs deserve high levels of compensation. Though most people would agree that the CEO does deserve to have the highest compensation in a corporation, they key question is how much is reasonable? How and Why CEO’s earn More Money In 1965 a typical corporate CEO in a major company earned 24 times more than the average worker. By 2005, the average CEO was making 262 times the average worker. This compensation gap is increasing at an alarming rate. Are CEOs really worth 262 times the average worker? In order to answer this question we must first analyze the How and the Why . How do CEO’s get compensated, and why are they compensated so well? CEO Job Responsibilities
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Dostal, Brown, Kasberg, Mattis, Wenning 2 A CEO has many duties in order to complete his job. The CEO serves as the chief director of the entire business, providing vision and leadership from the administrative, operations, and product line of the business to the customer service, financial and legal sector of the company. The CEO is the person in charge of organizing the company, and responsible for making the major decisions for the company. Long evenings at the office, lots of traveling and time away from the family are normal things for CEO to endure. On top of this all, it is the CEO’s job to make the company succeed, and the stress to succeed can be daunting.
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