What are some good arguments supporting the fact that CEOs make too much money?

Question

I am doing a debate for a class, and I am on the side saying CEO's make too much money compared to their employees. I've come up with some good information, but just wanted to see if anyone had any ideas I did not think of. What are some good arguments to support the fact that CEOs should not be making as much money as they do?

C V.. puhlease. Let's not be picky here. OK? I'm sorry I'm not as awesome as you are. I mean, look at your awesome spelling skills!

Sandwreckoner, I don't think you do use your head. Your spelling and grammar skills show that.

Answer 1

Try these links:

(btw, I have been a CEO but I wasn't over paid. In fact I sacrificed my salary to make sure there is enough money to pay for my people when things got tight)

Answer 2

One argument (which by the way, I do not support) is that a CEO's salary is a cost impacting a company's EBIT (earnings before interest and taxes - the major indicator of a company's haelth along with free cash flow - how much hard cash a company generates) thus reducing shareholder value and negatively impacting stock price. If a CEO took a smaller salary, EBIT and free cash flow would increase positively impacting stock price. In reality the impact of a CEO's compensation, even if in the millions, would be a drop in the bucket to large fortune 500 company.

Dividends have absolutely nothing to do with it. Dividends are one of the ways that a company chooses to pay back it's stockholders by utilizing free cash flow. A growth company will choose to invest it's free cash flow instead of paying out dividends. The stock holder gets the benefit of increased stock value (capital gains) to to increased future earnings from the investments.

By the way, pixie chick, a CEO's compensation in a publicly traded company is published information.

Answer 3

There aren't any. Except if the consumers stop buying the company's prducts, stop investing in the company or collectively 'sanction' the company. If you truly believe that CEO's make too much. Why do you buy what the company they work for sells ? This includes; shoes,software,stocks,beverages,air plane tickets,movie tickets,music CD's,designer clothing, drugs,cars, etc. You the consumer decides what a CEO earns by paying the retail price for the products or services they provide. Unless you're willing to drink only tap water and buy food directly from the farmer and soap,furniture & clothes from the Amish or Indigenous Indians. You're not helping the situation or your argument for that matter. These other products you buy like music CD's or designer drugs. You don't really need anyway. People have done without those things until very recently.

Answer 4

The additional pay has not been found to result in a proportionate increase in stockholder dividends.

One poster claims dividends have nothing to do with it, but that's
only true from a very narrow perspective. From the point of view that increased CEO pay should result in an increase of earnings, all other things being equal, the possible, even if not the actual, increase in dividends should be one result.

Answer 5

Try talking to a CEO directly. The perception of a CEO is not the same as being one. Spend a day with one before you go on too much of an attack, walk in his or her shoes. Good luck!

Answer 6

Your question is not logical. Your question states "The fact that ceo's make too much money". If it was a fact that ceo's made to much money, you wouldnt be looking for good arugements supporting. A fact is something that can be proved with proof (ie a measureable quanity or something you can validate with experiments).

Answer 7

Enron scandal.