...Shareholders Watchdog, Inc. 777 Wall Street New York, NY 10005 December 7, 2011 RE: Is CEO Compensation Fair? Dear employee, Accompanying this letter is our completed report that discusses the issue of the fairness of current CEO compensation. Although there are two sides of this argument, recent legislation and regulations for reform tend to support those who believe it is unfair. We have evaluated the current standards of CEO compensation and examined why both sides think they should prevail. There are some advantages that strongly support CEO’s huge salaries, including the following: * Provides incentives and motivates the CEO to obtain or surpass corporate objectives * Retains key-value leaders for the long-term, resulting in consistent corporate success * Creates a strong CEO confidence for him/her to reinvest in the corporation (bonds) Our overall research indicates that CEO compensation does not reflect actual performance in most cases. Many CEO’s are grossly over compensated (including stock options, bonuses, hedge funds, and other benefits). The “Golden Parachute” guarantee adds insult to injury. Based on our research, conducted from the UNLV Library periodicals database and online sources, we recommend the following: * Require corporations to adhere to sections 951, 953, 955 and 956 of the Dodd-Frank Bill * Maintain a collective (“Esprit de corps”) work force environment for all employees * Consult third party professional...
Words: 10991 - Pages: 44
...of any sort should be cast into departments in which the public consumers do not get caught into hidden traps either by cost, health reasons, or competition for the purchase from other business owners. It is vital to understand that if public society consumers are endangered by such hectic acts the individual will be the person hurt by the knick-knacks of the business. Is this fair to the public? No it is not and solutions to the problem must be addressed to ensure this act does not regulate into a long turn advantage for the tobacco companies. The importance of competition among firms is so that companies can give consumers a choice for a certain product. Governments intervene in these markets to ensure that the quality of the product and safety to the consumer is acceptable to purchase (Federal Trade). In many of the government reports they, regulate the behavior of industries to insure prices and excessive profits that are not highly rated in a disadvantage to the consumer. Businesses look for many ways to catch the consumers’ eye such as: brand name, trade mark, slogan, or catch phrase, to name a few. These advertisements swindle age groups of society to try out this harsh product despite if the major medical health concern is cancer. Many firms are out for themselves and how they can prosper within their industry and those small like consumers known as farmers have to settle for the less but yet complicated act of the big dog industry. Competitive...
Words: 830 - Pages: 4
...Commission, which placed most federal government employees on the merit system and marked the end of the so-called spoils system. The act provided for some government jobs to be filled on the basis of competitive exams. The Pendleton Act served as a response to President James Garfield's assassination by Charles Julius Guiteau. The Act was passed into law on January 16, 1883. The Act was sponsored by Senator George H. Pendleton, Democrat of Ohio, and written by Dorman Bridgeman Eaton, a staunch opponent of the patronage system who was later first chairman of the United States Civil service Commission (Theriault, 2003, p.56). The Pendleton Act was primarily an effort to eliminate political influence from administrative agencies and, secondarily, an effort to assure more competent government employees. It pursued these aims through the following major provisions: 1. A bipartisan commission called the U.S. Civil Service Commission was created within the executive branch to establish and implement personnel rules and procedures for the federal government. 2. Open and competitive examinations to test job-related skills were developed wherever practical within the agencies covered by the law and were to become the primary basis upon which to make hiring decisions. 3. Employees were given protection against political pressures, such as assessments or “required” participation in political campaign contributions. 4. Lateral entry into government positions was encouraged...
Words: 3908 - Pages: 16
...Houston Community College Homework 1-5 Presented To: Lloyd W. Gaddis By Yushana Ford Government 2305 8:00A.M- 9:30A.M Mon/Wed 09/20/2015 Chapter 1: The More Things Change…The More They Stay the Same 1. Analyze current problems and issues in American Government by applying Historical perspectives: -History Repeats Itself +A new Communication medium paves the way to Electoral Victory- Meaning the internet and social media have revolutionized American politics. Campaign advertising is the use of an advertising campaign through the media to influence political debate and ultimately voters. Political advertising has changed drastically over the last several decades. Harry S. Truman was proud of his accomplishment of shaking approximately 500,000 hands but his accomplishment was soon pale compared to the next presidential election with the advent of television, war hero and presidential candidate D.W Eisenhower created commercials to get votes and so on and it different with different elections and different decades. +The Power of Incumbency- It is usually used in reference to elections where races can often be defined as being between an incumbent and non-incumbents. Incumbents have easier access to campaign finance and government resources that can be indirectly used to boost a campaign. Incumbency is any elected official who is already in office and seeking re-election. 2. Explain the Philosophical underpinnings of American Political System through...
Words: 10611 - Pages: 43
...in America Robin OConnell POS110 Sept 30, 2012 Jeffery Steely Democracy in America One of the most basic rights we as Americans hold dear is the right to free speech. This is a civic issue that has been at the forefront of our country since its inception. This right is imposed on the minority just as it is for the majority of the citizenry by the government in an effort to recognize every citizen and their right to voice an opinion or even disagree about the majority opinion. Our current system of government stands true to the original ideas of the framers of the Constitution yet has also stood the test of time, moving forward as we grow as a nation, and still keeping the original ideals while amending those that become outdated with more relevant laws. The key to our democratic principles remaining in place is our commitment to our civic responsibilities in the country as a whole. The Constitution includes a system of checks and balances set there to make certain that all three branches of our government, the legislative, the judicial, and the executive, all must work together to make policy. This separation of powers and the requirement that all be included in policy making is what sets our country apart in its pursuit of democratic values. It was a disturbing omission in the initial Constitution of the specific meaning of "life, liberty, and the pursuit of happiness". The later ratification of the first ten amendments did go a long way towards clarification of the rights...
Words: 1872 - Pages: 8
...* Credit or Default Risk - Credit risk is the risk that a company or individual will be unable to pay the contractual interest or principal on its debt obligations. This type of risk is of particular concern to investors who hold bonds in their portfolios. Government bonds, especially those issued by the federal government, have the least amount of default risk and the lowest returns, while corporate bonds tend to have the highest amount of default risk but also higher interest rates. Bonds with a lower chance of default are considered to be investment grade, while bonds with higher chances are considered to be junk bonds. * Business Risk: This is the risk that issuers of an investment may run into financial difficulties and not be able to live up to market expectations. For example, a company’s profits may be hurt by a lawsuit, a change in management or some other event. * Interest Rate Risk: The risk caused by changes in the general level of interest rates in the marketplace. This type of risk is most apparent in the bond market because bonds are issued at specific interest rates. Generally, a rise in interest rates will cause a decline in market prices of existing bonds, while a decline in interest rates tends to cause bond prices to rise. For example, say you buy a 30-year bond today with a 6% annual yield. If interest rates rise, a new 30-year bond may be issued with an 8% annual yield. The price of your bond drops because investors aren’t willing to pay full value...
Words: 1501 - Pages: 7
...billing system and drug administration. Likewise in education computers are useful in teaching the basic skills. In office management the use of computer has made great impact on the area of our modern office equipment which had been automated such as typewriters, communication system and language translation. In business and professional office, computer is used in inventory. Control information processing, accounting programs payroll, designing and so on to mention but a few. Man enjoys entertainment, of the computer at home after a number of advantages, it allows on to practice in private keeps one of the street and it teaches one so many things in the area of Government, taking decision planning forecasting and budgeting and so on, the use of computer to process information and to make logical decision much faster than man is steadily being exploited. Computer have become an integral part of our lives having more advantage than disadvantage. Apart from the positive impacts of computers in our world, they affect our lives in some ways which are not beneficial those include crime aid, invasion of individual policy and changing the job and home environments. 1.1 STATEMENT OF PROBLEM There are numerous problems in use of computer in organization services. These problems include: the use of computer in modern organization has come with so many challenges despite the improvement, it has made on our...
Words: 5399 - Pages: 22
...and Antitrust The market power of either buyers or sellers, harms buyers who may have the opportunity to buy at competitive prices. It also reduces the production, which causes a deadweight loss. Excessive market power also raises issues of equity and justice, because if a company has too much monopoly power, it makes profit at the expense of consumers. A monopoly is a situation in which there is a single supplier or seller of a good or service for which there are no close substitutes. Economists and others have long known that unregulated monopolies tend to damage the economy by (1) charging higher prices, (2) providing inferior goods and services and (3) suppressing innovation, as compared with a competitive situation (i.e., the existence of numerous, competing suppliers of the good or service).[1] In theory, the Government or State could collect the excess profits that the company obtained through taxes and then redistribute it among the buyers of the product. However, this redistribution is usually not feasible. It is difficult to ascertain what proportion of the profits of an enterprise is attributable to monopoly power and it is even more difficult to locate all buyers and reimburse them an amount proportional to their purchases. How can society, then, limit the market power and prevent the anti-competitively use of it? In the case of a natural monopoly, i.e. an electricity/power company, the solution is a direct regulation...
Words: 2628 - Pages: 11
...billing system and drug administration. Likewise in education computers are useful in teaching the basic skills. In office management the use of computer has made great impact on the area of our modern office equipment which had been automated such as typewriters, communication system and language translation. In business and professional office, computer is used in inventory. Control information processing, accounting programs payroll, designing and so on to mention but a few. Man enjoys entertainment, of the computer at home after a number of advantages, it allows on to practice in private keeps one of the street and it teaches one so many things in the area of Government, taking decision planning forecasting and budgeting and so on, the use of computer to process information and to make logical decision much faster than man is steadily being exploited. Computer have become an integral part of our lives having more advantage than disadvantage. Apart from the positive impacts of computers in our world, they affect our lives in some ways which are not beneficial those include crime aid, invasion of individual policy and changing the job and home environments. 1.1 STATEMENT OF PROBLEM There are numerous problems in use of computer in organization services. These problems include: the use of computer in modern organization has come with so many challenges despite the improvement, it has made on our...
Words: 5399 - Pages: 22
...Microsoft Trial Research Paper Macroeconomics By: Ashleigh Magliano Introduction: Larger companies can become big threats to other smaller companies that are in a given market due to their power and innovation. Sometimes this can become more than a threat, and it turns to no competition at all between the markets due to the monopolization of a company. A company becomes a monopoly when it gains the control of the industry and has obtained the ability to change the output prices in that specific industry. With such power this opposes a threat to other businesses. The government has set up specific regulations for monopolies to control what they sell, how they sell it, and what services are allowed for consumers. The importance of regulating monopolies is to keep the market alive, to allow freedom for other smaller businesses. This keeps up competition in the market, and also keeps the monopolies from doing anything unreasonable. This has led to numerous trials on major companies, one of the biggest cases would be the trial against Microsoft INC. Acts for Regulating Monopolies: In 1890 the Sherman Antitrust act was put into effect, named after the Senator of Ohio, John Sherman and was the first component for congress to prohibit trust.(General Records of the United States Government, Record number 11) The Sherman Act intended by congress to help keep up competition in markets. Unfortunately the act was written to vague there were loopholes to the act and in only five short...
Words: 2220 - Pages: 9
...interest rates, inflation, and the state of politics and the economy in each country it also called rate of exchange or foreign exchange rate or currency exchange rate. 1.2 Objective of the Report: The primary objective of this report is to know the over functions of government in foreign exchange market. But the objective behind this study is something broader. Objectives of the study are summarized in the following manner: • To describe the exchange rate systems used by various government. • To explain how government can use direct and indirect intervention influence exchange rates. • To study existing government control over exchange rate system. • To know how government can affect economic conditions. • To have some theoretical exposures that will be helpful for our future career. 1.3 Methodology: For preparing this report, we have undergone group discussion, collected data from internet. We also studied different circulars and reference books on this topic. We hope these criteria will be enough to find out different picture of government influence on exchange rate system. 1.4 Limitations of the Study: 1. The time, 1(One) week, is insufficient to know all activities of government influence on exchange rate and prepare the report and presentation. 2. It was difficult to collect the information from group member for their job constraint. 3. Enough group discussion was not held due to time constraint. 4. Because of the limitation of information...
Words: 1724 - Pages: 7
...funds2. In this essay I will be discussing whether or not big money in campaign finance is a threat to democracy. It is important to consider the history of campaign finance reform and how it evolved over time, for this gives us a better perspective when reviewing our modern situation to see if democracy has lost its way. Before the 19th century, the majority of legislation concerning campaign finance was minor and its most salient concern was preventing mandatory donations to political campaigns. 31907 saw the introduction of the Tillman Act under Teddy Roosevelt's administration, this act essentially banned donations from national and state banks as well as large corporations to political campaigns. Further regulation came with the 1972 Federal...
Words: 2551 - Pages: 11
...Introduction “Ekin” is a transnational corporation. Ekin is our brand to produce the sport item in this world. Our logo is set by our brand name. Company Logo Our company is set at Vietnam and factory too. Our companies have produces so many sport item example basketball, football, badminton and so on. The more of the item we produce is sporting shoe. Except shoe, we also produce clothes, pants, stockings, basketball, racket and so on. Sporting Cloths of Men Basketball Shoe Gym Beg Vietnam is our home country, the main I choosing Vietnam is because of the material to produce our product is more cheaper than other country, second is the money exchange rate of Vietnam is more lower than other country, example Malaysia, US, UK, Singapore and so on. Today, we wanted to introduce a new product. The first country of we aim to sale this product is Malaysia. Because we getting know about have so many Malaysian like sport but their home economy is no allow of them to buy a shoe for sport. So that we create an ideal on produce a beautiful, performance and lower price to design a sporting running shoe. Even are rice family or poor family, they also can enjoy about the delight of sport in mood relax and happy. So that our design team group try hand for research the suit material for doing this ideal. New Product Introduction of EKIN The new product is...
Words: 5436 - Pages: 22
... A) True B) False 4) An informal group can help or hinder the proper functioning of a business. A) True B) False 5) Consumerism is an organized movement of citizens and government agencies to improve the rights and power of sellers in relation to buyers. A) True B) False 6) A sole proprietorship is a business owned and operated by a board of directors. A) True B) False 7) As a rule, for certificates of deposit the rate of interest your money earns is higher if you agree to keep your money on deposit for a longer period of time. A) True B) False 8) The free enterprise system is a command economic system. A) True B) False 9) The Fair Labor Standards Act does not require businesses to give its employees sick leave or paid vacations. A) True B) False 10) There are restrictions on the owner’s personal liability in a sole proprietorship. A) True B) False 11) The death of a majority stockholder of a corporation results in the dissolution of the corporation. A) True B) False 12) Liability law has had an impact on business by requiring them to place warning labels on products. A) True B) False 13) One of the disadvantages of the corporate form of ownership is the limited liability of its owners. A) True B) False 14) A sole proprietorship must be registered with the state to obtain its legal charter. ...
Words: 3220 - Pages: 13
...exempted from the GST, including capital gains, corporate and income tax. To better understand GST, consider the following: There exists a manufacturer, retailer and dealer (wholesaler). Goods and Service Tax is 10%. Now assume that the manufacturer buys the raw materials worth Rs 100 for Rs 140. Therefore, the total GST he will pay is Rs 4 by getting a tax credit of Rs 10 on the raw materials he had purchased. Now, the wholesaler too, who sells it for Rs 150 will pay Rs 2 as the total GST. The retailer will then sell the product for Rs 170 and he will pay Rs 2 as the total GST with the tax credit for the good, which eventually comes up to Rs 15. It’s Implication On Tax Revenue Will the implementation of GST result in the state government to lose out? That is one issue, which States might fear about,...
Words: 2236 - Pages: 9
