Who's business is it what an Executives compensation is?

Question

Pres. Bush is making an issue of compensation packages of executives, other than the investors and shareholders on any organization, privately held or publicly traded, who's business is it? Is it the individual employee? who has an agreed upon compensation package when they are hired. Please keep in mind how expendable the employee or the executive is. Why would John Q. Public have a standing interest in the compensation of a corporation he does not work for?

Answer 1

A lot of people feel that the debacle of Enron and World Com and several other corporations was brought on BY the corporate greed at the top of these organizations--- and when a company is publicly traded-- and it is bilked out of multiplied millions of dollars-- a lot of people suffer and suffer hard---and again and again , the government has to come in a save these people by providing all kinds of financial help and assistance to the tune of millions of taxpayer dollars--- SO--- in that--- there is a GREAT DEAL OF CONCERN that a lot of people have in the compensation packages that these people are set up on and what programs are in place to have oversight in such matters !!!

On top of everything else-- a good deal of the time these people have "golden parachute" clauses within their work agreements that leaves them in unbelievably superb shape when leaving a position --- EVEN IF THEY HAVE LEAD THE COMPANY TO THE BRINK OF RUIN !!!!

Answer 2

Publicly traded companies are run by the board elected each year by the share holders to govern the company for that particular year. In that they have to ensure the interest of all the stakeholders of the company. Stake holders not only include share holders but also employees, suppliers, financiers, government and most importantly customers. So any one and every one, directly or indirectly, affected by the decisions of executive compensation will have standing interest in it. No body wants it to be so high that their interest is affected nor any one desires it to be so less that it no more serves as motivational factor.

Answer 3

because that compensation ultimately goes into the prices of the goods or services that the company sells. because the greed trickles down and probably squeezes the salary and maybe the job security of the lower paid workers, which slack then needs to get picked up by the rest of us in terms of social services. individual employee agrees on pay when hired, but doesn't sign on to get minimal raises becausee ceo who is doing lousy job still gets hundreds of millions of compensation