LAW 412 Fall 2007 The High Cost of Executive Compensation In recent years there has been rising concerns about the excessive levels at which CEO�s are being compensated. According to a new report, �Top executives averaged $10.8 million in total compensation, which is over 364 times the pay of the average American worker. (www.aflcio.org)� To many this not seem fair because it seems that so many people are working hard, but so few are benefiting. Throughout my research, I have gathered information about the problem, who is affected by the problem, and what needs to be done in order to fix the problem. When looking at total CEO compensation, several figures should be considered. The first part of a CEO�s compensation package is his base salary. This is not necessarily the biggest problem. The next part of a compensation package that must be considered is the amount of incentives that are offered. I do not have any problem in a company offering a lot of money to executives if the company actually meets preset performance goals. The parts of the compensation package t....

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