Responsible Executive Compensation for a New Era of Accountability Essa

allowance and the Chief Executive Officer Executive compensation has come infra increasing scrutiny in recent literature in the rout out of the growing publicity surrounding managerial failures and administrator self-interest. Financial experts agree long been examining the problem of aligning the performance of executive directors with their salaries and benefits. Public discontent with the indubitable top-heaviness of the compensation structure has brought this issue into the spotlight throughout the business world. Experts compass point to the flaws of traditional cook upment schemes and offer a number of different solutions. stockholder value and the success of the firm can be significantly bear on by executive performance. Hence, understanding the advantages and costs of the current trends in executive compensation is crucial to the compensation committee of a Fortune calciferol corporation. The compensation committee has a difficult task u pon its shoulders. It must attain pay programs that attract and retain the best talent to address the respective(prenominal) organizations needs. It must design a strategy that generates victor returns for investors, appropriately measure managerial performance, and institute a pay do which is fair to both employees and shareholders and which really drives business results (Mercer p.4). There is abundant conjecture and research on the strategies thought to accomplish these goals, and the emerging trends in executive compensation seem to be highly successful. The growing public criticisms of ultra-high executive pay are not unfounded. According to Mr. Meizhu Lui, the ratio of CEO pay as a multiple of average worker pay has grown tremendously, from 41 to 1 in 1960 to 411 to 1... ...an Resource Consulting. (Jan. 26, 2004). Responsible Executive compensation for a New Era of Accountability. Perspective. Retrieved October 14, 2006, from http//www.mercerHR.com /responsibleECMercer Human Resource Consulting. (Aug. 9, 2004.). Tackling the Challenge of line up Pay with Performance. Perspective. Retrieved October 14, 2006, from http//www.mercerHR.com/perspective.Parrino, Robert. (2002). Rewrapping the package managerial incentives and corporate governance. Texas Business Review, 1(5). Retrieved Sept. 27, 2006, from the Business & gild Resource Center database.Traichal, Patrick A., George W. Gallinger, and Steve A. Johnson. (1999). The relationship between pay-for-performance contracting and external monitoring. Managerial Finance, 68(21). Retrieved Sept. 27, 2006, from the Business & Company Resource Center database.