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Ceo Compensation

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Submitted By soldier88
Words 10991
Pages 44
Shareholders Watchdog, Inc.
777 Wall Street
New York, NY 10005
December 7, 2011

RE: Is CEO Compensation Fair?

Dear employee,

Accompanying this letter is our completed report that discusses the issue of the fairness of current CEO compensation. Although there are two sides of this argument, recent legislation and regulations for reform tend to support those who believe it is unfair. We have evaluated the current standards of CEO compensation and examined why both sides think they should prevail.

There are some advantages that strongly support CEO’s huge salaries, including the following:

* Provides incentives and motivates the CEO to obtain or surpass corporate objectives * Retains key-value leaders for the long-term, resulting in consistent corporate success * Creates a strong CEO confidence for him/her to reinvest in the corporation (bonds)

Our overall research indicates that CEO compensation does not reflect actual performance in most cases. Many CEO’s are grossly over compensated (including stock options, bonuses, hedge funds, and other benefits). The “Golden Parachute” guarantee adds insult to injury.

Based on our research, conducted from the UNLV Library periodicals database and online sources, we recommend the following:

* Require corporations to adhere to sections 951, 953, 955 and 956 of the Dodd-Frank Bill * Maintain a collective (“Esprit de corps”) work force environment for all employees * Consult third party professional payroll agencies that evaluate and determine appropriate salaries

The goal of our research is to reveal the best solutions to optimize corporate payroll risk management that will promote steady growth for corporations, their leaders and work force. Sincerely,

Ray Mirkosky Report Director Encl.: Report

The Rich

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