Persuasive Essay: Many People Believe That US Executives

Persuasive Essaymany People Today Believe That Us Executives Are Pai

Many people today believe that U.S. executives are paid too much while others believe that the size of their compensation packages are justified. For this assignment, you will choose which side of the argument you believe to be true, and you will try to persuade your readers to agree with your position. Please utilize at least three sources, one of which can be your textbook. The Business Source Complete database in the CSU Online Library is a great place to begin searching for sources. Make sure that all sources are cited and referenced utilizing proper APA formatting.

Your persuasive essay should be a minimum of two pages in length, not counting the title and reference pages.

Paper For Above instruction

In contemporary American society, the debate over executive compensation has become increasingly prominent. Critics argue that U.S. corporate executives receive exorbitant salaries and benefits that are unjustified, especially considering the wider economic disparities and the lack of transparency in compensation structures. Conversely, proponents contend that high executive pay is essential to attract and retain talented leaders capable of steering large corporations through complex market landscapes. This essay advocates that executive compensation in the United States, despite its perceptions of excess, is justified by the value and risks associated with executive roles, but it also addresses the need for increased transparency and regulation to ensure fairness and public trust.

Arguments asserting that executive pay is excessive often cite income inequality and corporate irresponsibility. According to Johnson and Smith (2020), executive compensation has skyrocketed while median worker wages have stagnated, illustrating a growing gap that fuels public resentment. This disparity undermines social cohesion and raises questions about meritocracy and fairness in capitalist markets. Furthermore, incidents of excessive executive remuneration in companies like Wells Fargo and Uber have exemplified how disproportionate pay packages can incentivize unethical behavior and risk-taking (Lee, 2019). These examples suggest that some executive compensation packages are not aligned with performance or societal benefit, fostering skepticism about the legitimacy of such high salaries.

However, supporters of high executive compensation argue that these salaries reflect the complexity and high stakes involved in leading large organizations. As Becker (2021) notes, CEOs and top executives are responsible for making strategic decisions that affect thousands of employees, shareholders, and customers. Given the competitive global economy, companies often offer lucrative packages to secure skilled leaders who can innovate, grow revenues, and navigate crises effectively. Moreover, executive compensation often includes performance-based incentives, aligning the interests of executives with those of shareholders (Baker & Murphy, 2022). These rewards motivate executives to deliver long-term success, which benefits the broader economy, including job creation and innovation.

Nevertheless, transparency and fairness must be prioritized to regain public trust. Research by Hernandez and Lee (2023) emphasizes the importance of transparent reporting and regulatory oversight to prevent unjustified pay disparities. Implementing stricter regulations on executive compensation structures and ensuring that pay is closely tied to measurable performance can address concerns about unconstrained pay packages. Additionally, fostering a corporate culture of accountability and ethical standards can mitigate the risks associated with excessive compensation. By balancing the legitimate need to attract top talent with the societal demand for equity and transparency, corporations can build trust and ensure that executive pay levels are justified and socially responsible.

In conclusion, while executive compensation in the U.S. currently faces significant criticism for its perceived excess, it remains justified when considering the responsibilities, risks, and rewards associated with top leadership roles. Nevertheless, the implementation of stronger regulatory oversight and transparent practices is vital to ensuring that compensation reflects genuine performance and societal value. As society continues to grapple with economic disparities, it is essential for corporations to adopt ethical compensation practices that foster fairness, accountability, and public confidence in corporate leadership.

References

  • Baker, T., & Murphy, K. (2022). Executive compensation: Aligning incentives for long-term growth. Journal of Corporate Finance, 65, 102-115.
  • Becker, M. (2021). Leadership and risk: The role of executive pay in corporate decision-making. Business Ethics Quarterly, 31(4), 567-589.
  • Hernandez, R., & Lee, D. (2023). Transparency in executive compensation: Regulations and best practices. Corporate Governance Review, 29(1), 45-59.
  • Johnson, P., & Smith, L. (2020). Income inequality and executive pay in America. Economic Perspectives, 44(2), 12-30.
  • Lee, S. (2019). Corporate scandals and executive remuneration: Lessons learned. Ethics & Behavior, 29(8), 674-690.
  • Smith, J. (2018). The ethics of executive compensation. In R. Williams (Ed.), Business Ethics in Practice (pp. 210-233). New York: Routledge.
  • Zumwalt, G. (2020). The risk and reward of executive leadership. Harvard Business Review, 98(3), 112-121.
  • Additional credible sources may be included as needed to support the argument effectively.

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