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Essay / The Pros and Cons of CEO Compensation - 1172
However, the majority of researchers argue that the problem of excessive compensation should never be solved by legislation. It is argued that the involvement of the legislator would end up creating more problems than solutions (WAGNER, 2012). This is largely because it is never easy to establish a standard guideline for how much a CEO should receive. Companies that are doing relatively well prefer to pay their CEOs high. Likewise, with technological advancements and increasing innovations, businesses seem to be performing much better than in previous years. Improved performance translates into increased salaries and CEO compensation. Overall, internal regulatory bodies should be created to ensure that these offsets are not too extreme (WAGNER,