4/07/2006

CEO's Salaries Tied to Profits

There has been much talk in the business world about CEO's salaries being too high even when profits are down. Is this ethical? Personally it doesn’t matter how much a CEO makes but when the profits are down, the CEO’s salary should also be down. The president of Ford, Bill Ford, is taking a 40 percent hit on his salary due to the fact that of losses. He says he will not regain his normal salary until the company makes a profit.
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1 comment:

Brittney said...

I think a CEO's salary should be correlated with his/her company's performance. This has been a major controversy recently. Some CEOs have extremely inflated salaries, yet their companies continue to suffer one loss after another. On the other hand, we have CEOs like Steve Jobs. While he does pull down the hefty sum of $40 million per year, I think he deserves it. After being fired from Apple, he was asked to come back and he saved the company with the Ipod. Therefore, I think the CEO's salary should reflect the company's financial performance, for better or for worse.

4:41 PM

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