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Essay

CEO Compensation

Essay specific features

 

Issue:

Business

 

Written by:

Anonymous

 

Date added:

October 25, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 533

 

Was viewed:

6541 times

 

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Essay content:

She also argues that high CEO salaries "bad stewardship of resources." I will go into detail about both of their arguments in the next couple of paragraphs. Murphy asserts that pay for CEOs is indicative of their level of performance as long as pay is based upon stock performance. Thus Murphy believes that CEOs should be rewarded for actions that benefit shareholders and punished for actions that harm shareholders...
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Thus Murphy believes that CEOs should be rewarded for actions that benefit shareholders and punished for actions that harm shareholders. Murphy provides evidence that annual increases in salary for CEOs are positively correlated with the rate of return on stock. In response to the criticism that rewarding CEOs for current stock performance focuses on short term profit rather than on the long term Murphy argues that current stock market performance is an appropriate measure of long term potential...
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