Please read the articles in the “Reading and Resources” section above on executive compensation and take a position on whether U.S. senior executives are overpaid or not, and briefly present your case. Provide examples from the course or external sources to support your position.
Compensation professionals and managers alike are confronted with special compensation issues and problems that arise. In Unit 7, we will focus on several special situations.Executive Compensation, due to the attention the news media has given it in recent years, deserves a special focus. Without a doubt, the difficulty U.S. labor unions – both in the public and private sectors – and their members have experienced over the last several decades is worthy of special mention.
CourseSmart Textbook:Milkovich, George T., Newman, J. M., & Gerhart, B. (2014). Compensation (11th ed.). New York, NY: McGraw-Hill.
Articles & Websites:Labor Union Report. (2011, September). How unions kill jobs: The union tax.
Eduardo Porter, E. (2012, July). Unions’ past may hold key to their future. The New York Times.
Garuth, D. L., & Handogten-Garuth, G. D. (2002, July). Fundamentals of international compensation. Winston J. Brill & Associates.
Use the following resources to assist you with your response for Unit 7.1 DB: Executive Compensation.
|Watch VideoGetting Executive Pay RightDuration: (4:49)
User: towerswatsonconsult – Added: 7/21/11YouTube URL: http://www.youtube.com/watch?v=eKFGSIiATl0
|Watch VideoWhat do Executives Think About Compensation?Duration: (4:32)
User: pwc – Added:8/21/12YouTube URL:http://www.youtube.com/watch?v=0UhCJuBhf9c
|In this video Marc Ullman, leader of Towers Watson’s Executive Compensation practice in New York, discusses the key challenges companies face in designing effective executive pay programs and why the proper alignment between pay and performance is often anything but straightforward.||Tom Gosling from PWC summarizes the findings of our global study into how senior executives feel about the effectiveness of executive compensation.|
Supplemental Resources:Executive Paywatch
ABB. (2013). Executive Committee remuneration, governance and principles. ABB 2013 Annual Report, Remuneration Report.