...assignment is “CEOs are paid too much”. There are more than a few arguments about the CEO salary over the years. It is clear that CEOs earn more or huge amounts of salaries compared to most leaders globally. Some people argue that it is not fair for CEOs to earn these amounts because it affects the financial system of a country or the world. This people argue that CEOs perform less work compared to the wages they earn annually (Murphy, 2006). My position regarding to the topic is different from Bush argument that stated “CEOs earn too much compared to their performance”. CEOs earning too much is significant because they are the leaders of organizations. (Lorsch, 2012). The audience should understand why CEOs deserve great salary than what they get. CEOs deserve 300 times what the average employees earn. One of the major imperative reasons that CEOs should earn 300 times than employees is due to their contributions in their organizations. “The growth and development of most organization have been influenced by the repetitive performance of CEOs” (Lorsch, 2012). This is one of the major phrase that the audience should understand about CEOs and the reason why they deserve a great salary. My intention to John and the former President of America, Bush is to make them understand the significance of CEOs to earn great salaries. However, there many factors that may deny my argument from being agreed by Bush and John. The audience will not agree with the claim “CEOs salaries do not...
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...Summer 2004 GREAT Boards Published by Bader & Associates Governance Consultants, Potomac, MD BOARDROOM BRIEFING CEO selection: getting it right By Sharon O’Malley By the time board Chairman Freddie Burton convened a 12-member search committee to recruit a new chief executive officer for St. John Hospital and Medical Center two years ago, the facility had been through six CEOs in as many years. This time, he vowed, the Detroit hospital’s trustees would take their time deciding on a new CEO and would make that decision using a process agreed to up front by the facility’s 24-member board of trustees, its medical staff and its parent system, St. John Health. • Developing a profile of the ideal CEO, based on a position description, a plan for the hospital’s near-term future and the priorities for the CEO’s first 12 to 18 months. • Identifying and evaluating candidates. “We seized the opportunity to learn from our mistakes.” Freddie Burton • Making the selection. • Negotiating compensation and other terms. • Supporting the transition. “We seized the opportunity to learn from our St. John Hospital & Medical Center Some boards endeavor to manage the search mistakes,” says Burton, a Wayne County, Mich., process themselves, but more often, they select probate judge, who watched a prior search committee of five an outside search firm to facilitate the process, identify trustees and one doctor select a CEO whom the full board did candidates who fit the ideal...
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...CEO Compensation: A Display of Obscenity For years, the great debate over whether or not CEOs are overpaid has raged on. Some studies show that the average CEO in the US was paid $10 million to $15 million 2005[1]. Proponents argue that this level of compensation (compensation is the total amount of remuneration received by an employee, including salary, stock options, etc.) is necessary to obtain and retain the world’s greatest leaders, whole opponents argue the exorbitant amounts aren’t justified. However, in a world where economies are hurting, it’s hard to justify why CEO compensation is rising, and fast. While CEOs are hard-working, intelligent leaders who’ve worked up to their position, the rising levels of CEO compensation are unreasonable and almost unethical given the current state of the world economy. To put it simply, CEOs are accountable for the performance of their company, but in the end they are still managers. It is important that as a society, CEO compensation is better controlled and more reasonably determined. The high CEO compensation that exists today outlines the disparity of income between CEOs and their workers. CEOs pulling in millions while their workers struggle to get by is increasingly becoming an issue. A CEO working for a Fortune 50 company makes 213 times the average worker[2]. For instance, the CEO of Walmart pulls in $16,270,000 while the median worker makes just $22,700[3]. One of the worst CEO-to-worker pay ratios is found at UnitedHealth...
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...Corporate Strategy Analysis Discussion This week in the learning team group the discussion was on the destination videos of the four CEOs that we are studying. The discussion was whether or not the group thought the strategies made by these CEOs were sound or not. All these CEOs made decisions by using formal planning. The steps of formal planning are: situational analysis, alternative goals and plans, goal and plan evaluation, goal and plan selection, implementation, and monitor and control. (Foundations of Management) Last week the discussion was on Anne Mulcahy Xerox’s CEO. The group agreed that she had to make decisions that were not easy but was necessary for the company’s success. She had to cut certain jobs even a division she started up herself. Xerox was in a lot of financial distress with its ten million dollar fine and being on the verge of bankruptcy. Anne Mulcahy had to be innovated as well as creative to bail the company out of its downward spiral. She gambled by putting money into new technology such as the color digital printing and consulting services. Xerox now no longer struggles with weak sales. As a matter of fact the company is growing and sales have been increasing. Coca Cola’s CEO Neville Isdell had retired in 2001 after being employed with the company for thirty five years. He never aspired to be a CEO. Neville Isdell, referred to as the Indiana Jones of Coke, came back to Coca Cola after the sales of the company began to decrease because...
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...Why was the study conducted? Jim Collins conducted the study with 22 research associates from 1996 to 2000 to search the reason that “catapults a company from merely good to truly great”. Are there any common features – in particular concerning leadership style - within those companies that had shifted from good results to great performance on the long run? Why other companies failed to reach excellence when others outpace their competitors in a sustainable way? Are their managers sharing common personality traits? Can a good company become a great one and how? What was the main research question? The study focus on the leadership traits of the CEO of those few companies which reach excellence, so called “good-to-great” companies. How do they behave? How do they communicate? What are their backgrounds? Same studies have been made among most of the companies who did not really succeed to clearly outperform their competitors during a long period of time. How was the study made? • The first step was to select among the “1435 companies that appeared on the fortune 500 from 1965 to 1995” those who had a specific pattern regarding their performance. The targeted companies were those who had during 15 years stock performance below or at the level of the stock market and from a transition point succeeded to have “cumulative returns” of at least 3 times the market during the next 15 years. It is also important to note that this shift should not be industry specific. These criteria...
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...effectiveness of a leader is to the organization he is leading. This paper will examine the effectiveness of the Google CEO as a case study, the leadership style and the CEO organizational value. The ethical behavior of a leader can affect the effectiveness of other workers in the organization as the leader in any organization are often seen as an object of emulation by the employee of the company. Ethical behavior of Google CEO shall be review in this paper as well as the significant value that made the leader a successful CEO. Background of Google CEO (Larry Page) Larry Page and Sergey Brin founded Google in 1998, since inception, the company has recorded a growth of over 40,000 employees worldwide, Larry Page co-founded Google while pursuing his Ph.D. at Stanford University and became the first CEO until 2001growing the company to over 200 employees during the period. From 2001 to 2011, larry became the president of product for the company. He holds a bachelor degree in Engineering from University of Michigan and his masters in computer science from Stanford University. Larry was honored with Marconi’s prize in 2004, He is also a member of National Advisory Committee (NAC) of the University Of Michigan College Of Engineering. Larry Page Leadership Style and Philosophy His philosophy can be best summed up with this quote: “We should be building great things that don’t exist.” (Larry Page, 2013). This is why Google doesn’t pay attention to competition who is working on...
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...company will have simple make up that will only need five to seven employees. The employees will consist of a president and CEO, a general manager, a team manager, and two to four entry level store employees. The amount of employees is a small number but, as the store grows the number of employees that the store will need will grow as well. With a small amount of employees it is vital that all the employees must always complete what is expected of them. The employee’s responsibilities and duties are listed below in a table. Employees Title and Responsibility | President and CEO | This is myself. Will handle the financial aspects of the business. In addition to this I will manage inventory that comes in and out of the store. | General Manager | General manager is in charge of the keep up of the store. Ensuring that all employees are doing their jobs correctly and in a timely manner. | Team Manager | Will run shifts when the general manager is not available. Will have authority to do price over rides and make offers on products that consumers are bringing into the store. | Floor Associate | Main duty is to ensure great customer service for every customer that comes through the door. In addition to this when there are no customers or multiple employees stocking is to be handled daily. | The talents needed of the employees would range by what their job title and responsibilities are. I myself plan to take the position of CEO. I have both a background...
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...Leadership Style: What Do People Do When They Are Leading? Le’Che Mayes Professor: Dr. Joni Kurylo BUS 520 - Leadership and Organization 6/7/2013 Tony Hsieh born December 12, 1973 is an American internet entrepreneur and venture capitalist. Tony was born in Illinois and grew up in the San Francisco Bay are of California. He graduated from Harvard University with a degree in computer science. While at Harvard, he managed the Quincy House Grill selling pizza to the students in the dorm. After college, Hsieh worked for Oracle Corporation. After five months, Hsieh found himself dissatisfied with the corporate environment and quit to found Link Exchange. In 1996, Hsieh started developing the idea for an advertising network called LinkExchange, members were allowed to advertise their site over LinkExchange's network by displaying banner ads on their website. They launched in March 1996, with Hsieh as CEO and found their first 30 clients by direct emailing webmasters. In 1999 Hsieh sold LinkExchange to Microsoft for $265 million. After selling LinkExchange to Microsoft, Hsieh co-founded Venture Frogs, an incubator and investment firm, with his partner. In 1999 Hsieh was approached with an idea of selling shoes online. After some skepticism Hsieh and Lin his business partner invested through Venture Frog and two months later Hsieh joined Zappos and he is now the CEO of the online shoe and clothing store Zappos.com. (www.deliveringhappiness.com/about-us-the-author)...
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...have to be cut. Organizational Chart Purpose of Each Role The purpose of the role of CEO is overseer of the entire organization. Each final decision that is made has to have the approval of the CEO. Before any cuts are made the proposal has to be signed off by the CEO. The position is the most important position in an organization like a health care facility. The person with this position has to know what is going on at all times. It was the decision of the CEO to appoint a project manager to work closely with the financial manager to create a way to cut the spending and Baylor Regional Medical Center without having to lose any employees. The project manager’s role in this particular project was to first meet with the financial manager to get a sense of where the most money was being spent that could possibility be cut. After that meeting, the project manager would meet with each affected department and give them an overview of what needs to happen in the next 30 days. A report detailing what is spent a month on everything from salaries, supplies, catering, travel, training, this would also include that manager’s salary as well. The financial manager’s role in this project would be to help each department create these reports that they would need for the next meeting. The financial manager will be the key to the entire project, because this person would be able to tell if what we propose to do will...
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...Most CEOs success stories started with an entrepreneur, an idea, and a business loan. Michael Dell (Dell, Founder and CEO) and Andy Grove (Intel, Cofounder and CEO) success’ stories were no exception. Michael Dell launched his company in 1984 with a unique business model known as” mass customization” (Krames, 2003, p 59) or a “one-to-one” (Krames, 2003, p 59) between customers and company. The company delivered what the customers exactly want with “rock-bottom prices” (krames, 2003, p.59). With no margin paid to distributer or middleman. Dell increased customer savings while keeping a healthy profit margin. Dell’s business success continue to grow, four years later the company went public and Michael Dell at age 27 was named the “Youngest CEO” of a Fortune 500 Company. The second CEO and cofounder of Intel Andy Grove and other two engineers launched their company in 1968 with the invention of microprocessor that revolutionized the industry. Andy Grove dominated the market with little or no competition until 1984 when a Japanese company which provided the same products took over the market by lowering their prices, after trying almost everything, Andy Grove and his top managers decided to leave of the memory chip business and switch to solely microprocessors ship. They went on to build the world’s largest chip-making business (Krames, 2003, p 135) Along the way, both CEOs faced some challenges. In 1980 Andy Grove had to make a crucial decision when he decided it is time for...
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...review a University of Phoenix provided accounting memo written from an accountant to the company’s CEO, analyze what information should be included in the memo versus what should be removed; consider if the use of accounting specific jargon is appropriate based on the audience; the CEO; and finally explore what possible repercussion can happen if the memo is not suitable for the targeted audience. In the initial review of the memo, the first error that immediately jumps out is the heading and salutation lines. Both use the acronym “CEO” instead of using the person’s first and last name; which is the more professionally acceptable approach. The CEO may interpret this as either a lack of attention to detail or that the information is generic and not specific to level of authority. Next, the entire memo reads extremely choppy and does not give the reader much lead-in information about why the author has sent the memo to begin with. Since the communication is going directly to the CEO, the introductory paragraph should be clear, concise, and to the point. The remaining communication needs to address what problems are relevant and discuss why it is necessary to consult with the CEO for a solution. There are two additional big red flags with the Alex Accountants memo. The first is the lack of proof reading and the second is the use of accounting specific acronyms. A CEO will not necessarily know accounting jargon,...
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...work together to become a successful company (Kotter, 1990). Kotter mentions that there are three different ways to deal with complexity of organization. The first one is planning and budget, second was organizing and staffing, and third that managers control and solve problems. I will tell you about the organization I currently work for that made some great strides that remind me of what Kotter is talking about in his article. Setting a direction is very important part of leadership and for your team to understand. You will lead them with the vision you have, if a leader is unclear about their vision the organization may not be successful. I work for a healthcare organization right now that has went through some financial difficult in the past. The organization opened up a brand new 45 million replacement healthcare facility in a small community. The vision by the previous CEO was build it and they will come. Unfortunately, that was not the case with the new replacement facility. This CEO had a vision that was unlike the other leaders in the organization. The CEO was let go and a new CEO took over. The current CEO knew that some way that she had to build the trust back up within the organization and community in order for the organization to survive. This is where she held community talks and open houses so she could tell people about her vision and where she would like the organization to go. She had to do this in order to gain trust back for the organization....
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...Larry Page: CEO of Google Larry Page is the co-founder and CEO of Google. He cofounded the company in 1998 with Sergey Brin while they were both Ph.D. students at Stanford University. He was the first CEO of the company until 2001. From 2001 until 2011 Page was the president of products. In 2011, he reclaimed his position as CEO. He has a bachelor’s degree in engineering from the University of Michigan and a master’s degree in computer science from Stanford University (www.google.com). Larry Page has an innovation leadership style. An innovate leader is one who develops both vision and strategy, sets up processes to materialize it, and creates an organizational culture that helps to facilitate the creation of ideas and implementation (Bel, 2010). Larry Page has done this as co-founder and continues to innovate as the CEO of Google. Page consistently pushes the envelope at Google, encouraging ideas that most would deem unthinkable. The role of an innovative leader is to inspire by generating ideas, vision, strategy and design, and building the organizational structure, culture, and processes that support them (Bel, 2010). Innovative leaders have the ability to recognize opportunities and develop them, something Page has succeeded at doing at Google. Page has the creativity to come up with ideas and the discipline to develop them. Page encourages risk taking and can handle risks well. Page empowers and facilitates Google employees’ work, which has led to a large number of...
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...Accounting for Non-Accounting Majors ACC310-1203A-03 Colorado Technical University Online Sharon Williams August 13, 2012 Washington Mutual Bank Add on from Phase 4 What went wrong that caused the system of internal control to fail at Washington Mutual Bank? High risk mortgage lending, shoddy lending practices, maneuvering borrowers into high risk loans, corrupt the financial system, selling delinquency prone and fraudulent loans, and giving compensations that help bring down financial disaster on them. Starting in 2004 they started using a strategy in lending to make more money by taking high risk loans. In 2006 they started experienced high rates of failure and defaulting loans. By 2007 the bank was losing money that had to do with poor quality and fraudulent loans and securities. The bank internal control systems fail because no one took the evidence that was provided by employees in email, audit reports, and reviews seriously. The bank CEO and president was told of the extensive fraud by Long Beach Mortgage Company. After looking over the review the bank tried to stop the fraud, but it was ineffective. The senior management also helped in sells the delinquency loans to investors. Regulatory failure of the Office of Thrift Supervision (OTS) did not try to stop what they knew was unsafe and unsound practices at WaMu that help with their down fall. This bank had over 500 grave defects. The records of OTS has shown that during the last five years the...
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...NORTHCENTRAL UNIVERSITY ASSIGNMENT COVER SHEET Student: Kenneth Moseley THIS FORM MUST BE COMPLETELY FILLED IN Follow these procedures: If requested by your instructor, please include an assignment cover sheet. This will become the first page of your assignment. In addition, your assignment header should include your last name, first initial, course code, dash, and assignment number. This should be left justified, with the page number right justified. For example: DoeJXXX0000-1 1 | Save a copy of your assignments: You may need to re-submit an assignment at your instructor’s request. Make sure you save your files in accessible location. Academic integrity: All work submitted in each course must be your own original work. This includes all assignments, exams, term papers, and other projects required by your instructor. Knowingly submitting another person’s work as your own, without properly citing the source of the work, is considered plagiarism. This will result in an unsatisfactory grade for the work submitted or for the entire course. It may also result in academic dismissal from the University. | | MGT7019-8 | Dr. Angie Sokol, PhD | | | Ethics in Business | MGT7019-3 | | | <Add student comments here> ------------------------------------------------- ------------------------------------------------- Faculty Use Only ------------------------------------------------- ...
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