Are executives overpaid? What are the disadvantages of overpaid executives?

Is it really fair that executive compensation has been controversial and is 780 times higher than that of low-level employees?

It is reasonable for executives to be paid well, there are no downsides, and executives are not overpaid compared to the value they create.

1.Increased business opportunities at top companies are one of the reasons for executive compensation**. Today's executives are being asked to run more global companies than their predecessors.

It is often believed that CEOs' high salaries are mainly for blackmailing employees, but this does not explain history very well. By most measures, corporate governance has become more rigid and strict since the 70s of the 20th century, but CEO compensation has remained high and rising. This suggests that it is in the broader interest of the business to recruit top candidates for increasingly difficult jobs.

2.The high salary of an executive is justified because it helps to increase the value of the company.

The top CEO salaries are paid to outside candidates, not to those who are comfortable with, and this is another sign that the high CEO salaries are not some form of plunder at the expense of the rest of the company. When companies tie the CEO's compensation to the CEO, the market reaction has been positive, suggesting that these practices don't just create corporate value for the CEO.

Senior management personnel refer to the personnel in the management of the company who hold important positions, are responsible for the operation and management of the company, and grasp the important information of the company, mainly including managers, deputy managers, financial leaders, secretaries of the board of directors of listed companies, and other personnel specified in the company's articles of association.

The behavior of financial executives in the financial crisis, who still paid high salaries, drew global condemnation. In China, the latest news is that the Ministry of Finance has issued regulations that the maximum annual salary of executives in the state-owned financial sector shall not exceed 2.8 million yuan. There are more detailed notes behind the regulations, including the 2008 liquidation of executive remuneration in state-owned financial institutions, including the pre-tax remuneration, including the basic.

Performance Cost Profit When the number of employees decreases and the cost of operation decreases, the decline in performance does not mean the decrease in total profit, and it may also lead to an increase in total profit due to the reduction of employees and operating costs, <>

In this case, the executive's compensation will also increase. As soon as the sky-high salary was revealed, it immediately attracted a lot of controversy. Some listed companies explained that there was no major change in the basic salary of senior executives, mainly because of the change and cashing of the "incentive part".

This explanation does not hide the fact that income disparities are widening. Salary incentives are necessary, and it is normal to have income disparities, but it is not normal for the income gap between executives and the working class to widen dramatically or even indefinitely. Even in developed countries where executives advertise, executive salaries should not be stated:

With the average income of ordinary employees and society increasing excessively, at the beginning of last year, the reasonableness and transparency of the "sky-high compensation" of executives in some companies in the United States caused a lot of controversy. The pay gap between executives and ordinary employees is far more than 1,000 times, and the former is rising much faster than the income of ordinary employees. Many employees questioned:

Can one person's contribution really equal to a thousand? Amid the suspicions, the chairman and chief executive of The Home Depot Corp., the world's largest home furnishings retailer, was forced to resign. Under the popular trend of "connecting with the international market", <>

The sky-high salaries of executives of domestic listed companies are also hitting new highs, and the "sky-high salaries" that have attracted dissatisfaction once again reflect the stubborn disease of listed companies that despise investors as returns. Compared to the return on investment of investor Weibo, the high annual executive compensation is not convincing. In the past seven years, there are probably many figures worth remembering in the history of China.

Investors have opened more than 100 million accounts, contributed more than 800 billion yuan in financing, paid more than 200 billion yuan in stamp duty on transactions, and paid a large number of transaction fees. But the returns for investors have been disappointing.

Mainly because of these executives, some employees will work harder, and the company will become better and better, and it is also because of these executives.

Because this job is very important, the status is very high, and the requirements for employees are also very high, they deserve such a high salary.

Legal analysis: 1. Basic salary: It is the part of the salary that guarantees the basic life of the laborer, and is necessary to maintain the reproduction of the labor force of the laborer.

2. Position (position, technology) salary: It is determined according to the business and technical requirements, labor conditions, responsibilities and other factors of different positions (positions). When the job changes, the salary of the position (position, technology) also changes.

3. Annual merit salary: based on the length of service, combined with attendance and work performance.

4. Floating salary: also known as performance salary, which is determined according to the quality of the company's operating efficiency and the performance of the individual.

Legal basis: Article 10 of the Labor Contract Law of the People's Republic of China A written labor contract shall be concluded to establish a labor relationship.

If a labor relationship has been established and a written labor contract has not been concluded at the same time, a written labor contract shall be concluded within one month from the date of employment.

If the employer and the employee conclude a labor contract before employment, the employment relationship shall be established from the date of employment.

Summary. Excessive growth in executive compensation can have a negative impact on the company's growth. First of all, too fast salary growth can lead to an increase in the company's costs, which can affect the company's profits.

Second, too rapid compensation increases can lead to confusion in the company's performance management, which can affect the company's performance. In addition, too rapid pay growth can lead to income inequality among the company's employees, which can affect the company's team cohesion. Finally, too rapid compensation growth can cause the company's financial situation to become unstable, which can affect the company's growth.

Excessive growth in executive compensation can have a negative impact on the company's growth. First of all, too fast salary growth can lead to an increase in the company's costs, which can affect the company's profits. Second, too rapid compensation increases can cause the company's bright performance management to become chaotic, which can affect the company's performance.

In addition, too rapid salary growth can lead to income inequality among the company's employees, which will affect the company's team cohesion. Finally, too rapid compensation growth can cause the company's financial situation to become unstable, which can affect the company's growth.

Can you elaborate on that a little bit more?

Excessive growth in a company's executive compensation may adversely affect the company's operations. Reasons:1

Excessive growth in executive compensation could lead to a deterioration in the company's financial position, which could affect the company's operating conditions. 2.Excessive growth in executive compensation can lead to an imbalance in the compensation levels of the company's employees, which can affect the company's performance.

3.Excessive growth in a company's executive compensation can lead to a lower return on investment for the company's shareholders, which can affect the company's growth. Workaround:

1.Companies should develop a reasonable compensation management system to ensure that the company's executive compensation does not increase too quickly. 2.

Companies should regularly review their executive compensation to ensure that they are justified in their growth. 3.Companies should regularly evaluate the company's financial position to ensure that the increase in the company's executive compensation does not affect the company's operating conditions.

Personal Tips:1Companies should take proactive steps to ensure that the increase in executive compensation is reasonable to avoid adversely affecting the company's operations.

2.Companies should regularly evaluate the company's financial position to ensure that the increase in the company's executive compensation does not affect the company's operating conditions. 3.

Companies should take proactive steps to ensure that the level of compensation for their employees is appropriate to avoid affecting the company's performance.