Executive Pay the Problem With Term Paper

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Other benefits include payouts or large severance packages should an executive leave a corporation, whether or not they fulfilled the terms of their initial contract (Griner, 1996). There has been some criticism of late of agencies and organizations that offer compensatory packages for CEOS that do not meet organizational objectives. Employees in many instances are not afforded the same benefits or exemptions that executives are. Most employees are likely to be fired or laid off without any benefit or pay out particularly when their performance is considered marginal. This is not always the case however with executive pay.

Change on the Horizon

One of the biggest challenges that lies ahead for HR managers and organizations will be holding executives accountable for the results they produce within an organization. Boards must more and more take a "rigorous approach to ensure that pay reflects performance" so that stakeholders can measure executive contributions to the organization, to its growth, market share and human capital (Chingos, 2004).

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Executive pay should also be more closely scrutinized to ensure the gender inequalities evaporate in the coming years.

At this time there is no justification for the pay gap that currently exists with regard to male and female executive representatives. Though some gender related wage gaps still exist among traditional employees, the gap is still far more apparent and large among organizational executives. HR representatives must take an active role to ensure that executives are compensated on the basis of their skill set, accomplishments and expertise rather than their gender.

Some officials have recommended a stricter policy of accountability and performance evaluation in order to mitigate the current problems that exist with regard to executive compensation (Chingos, 2004). This combined with new federal legislation may help mitigate the problems that currently exist within the realm of executive pay. At the very least such actions will bring more attention to the inequities that currently exist with regard to executive compensation......

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