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Step 1 Read and watch the following 1) Read the Case Study in Chapter 11 of your textbook on page 518-519 "Reporting the Ratio of Executive Pay to Worker Pay: Is It Worth the Trouble"
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Step 1 Read and watch the following 1) Read the Case Study in Chapter 11 of your textbook on page 518-519 "Reporting the Ratio of Executive Pay to Worker Pay: Is It Worth the Trouble". 2) In 2019, CEOs of S&P 500 companies received, on average, $14.8 million in total compensation. The average S&P 500 company CEO-to-worker pay ratio was 264-to-1. Analyze the CEO salary to employee pay ratios from this website: https://aflcio.org/paywatch/company-pay-ratios (Links to an external site.) 3) Watch the following video: https://youtu.be/Ok--Ge2EKVc (Links to an external site.) Step 2 Post the following. Respond to the following, and if appropriate, include personal experience as part of your answers. Cite your resources and put quotation marks around direct quotes to support your opinions. You may also refer back to the previous assignments to support your opinions.
Comment on the thoughts expressed by at least two other students. If differences of opinion occur, debate and support your viewpoint professionally, citing references and resources appropriately. |
All Discussion Board Requirements:
- Post a minimum of 3 posts per discussion, 1 initial response and 2 replies to a classmate
- The first post must be made at least 2 days before the due date
- The first post should be at least 100 words
- Reply posts should be at least 25 words
- Spell check, grammar check, proof read, use Netiquette
- Include salutation to start replies (ie: "Hello John")
- Use quotation marks around direct quotes and cite all resources
- No late discussions are graded
There is a Grading Rubric for all discussions. To view this, click on the down arrow next to the gear icon in the top right above the discussion instructions.
NOTE: If you are typing a long post - particularly your initial post to the discussion, it is a good idea to type it in Word first. You can then save it there. Often students type something long directly into the discussion & it somehow gets deleted or lost. So, it is a good idea to save long discussion board posts and then copy them into the reply window.
Expert Solution
Do you believe it is an undue burden on companies to compute and report the ratio of chief executive compensation to employee compensation? Why or why not?
I do not believe that this is an undue burden for companies. I think they should give this information so that employees can decide if the company ratio is really something they want to continue to work for. They may have better luck with salary and benefits by going to a different company with a better ratio, instead of being left in the dark.
Do you believe reporting this ratio will result in changes that benefit companies, employees, or society? Explain.
I think that by reporting these ratios employees will either leave companies more frequently or also stay depending on the ratio that the company they work for releases. If a company has a reasonable ratio I could see employees staying longer because of better pay. On the opposite end I see many employees leaving the company if the ratio is bad and the benefits/salary are bad as well.It would hopefully put the greedy companies out of business while the more reasonable companies succeed in the marketplace.
According to the website above, research 2 different company's pay ratios and report the following for EACH: company name, CEO total salary, median worker pay, CEO vs. median employee pay ratio, why you chose these companies.
Company Name: Intel Corporation
CEO salary: Robert Swan: $66,935,100
Median worker pay: $96,300
Pay ratio: 695:1
Company Name: The Walt Disney Company
CEO salary: Robert Iger: $47,517,762
Median worker pay: $52,184
Pay ratio: 911:1
I chose these companies because I have been interested in working for them at some point in my life.
Provide a one to two sentence summary with your biggest insights or take-away from this information (ie: what's fair, what's unfair, what can be fixed, etc).
My biggest takeaway is that CEO’s make an absurd amount of money every year compared to its employees. It is very unfair because a large amount of the working class cannot afford to buy a home, or barely live a comfortable lifestyle.
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