Subject category:
Human Resource Management / Organisational Behaviour
Published by:
IBS Center for Management Research
Length: 13 pages
Data source: Published sources
Abstract
The case discusses the reasons behind the high compensation of top executives and Chief Executive Officers (CEO) in particular. It examines the evolution of the CEO compensation structure over the years, and why it has become a controversial issue. The case also examines the various components of the compensation structure of a CEO and the implications of high CEO compensation on the performance of the organisation and on the morale of lower level employees. Finally, the case suggests some measures to solve the controversy. This case is structured to enable students to: (1) evaluate the role and importance of CEO''s in an organisation vis-a-vis other executives and employees; (2) analyse the various factors that influence, or are responsible for, high CEO compensation; (3) understand the implications of high CEO compensation on the performance of the organisation as well as the morale of other employees; (4) evaluate the reasons whether a high CEO compensation package is justified or not; and (5) discuss the elements that should determine the CEO compensation. The case is targeted at MBA/PGDBA students and is intended to be part of the human resources management curriculum.
About
Abstract
The case discusses the reasons behind the high compensation of top executives and Chief Executive Officers (CEO) in particular. It examines the evolution of the CEO compensation structure over the years, and why it has become a controversial issue. The case also examines the various components of the compensation structure of a CEO and the implications of high CEO compensation on the performance of the organisation and on the morale of lower level employees. Finally, the case suggests some measures to solve the controversy. This case is structured to enable students to: (1) evaluate the role and importance of CEO''s in an organisation vis-a-vis other executives and employees; (2) analyse the various factors that influence, or are responsible for, high CEO compensation; (3) understand the implications of high CEO compensation on the performance of the organisation as well as the morale of other employees; (4) evaluate the reasons whether a high CEO compensation package is justified or not; and (5) discuss the elements that should determine the CEO compensation. The case is targeted at MBA/PGDBA students and is intended to be part of the human resources management curriculum.