Evaluating The Driving Force Of A Corporation s Success...

In examining the driving force in a corporation’s success, one of the key factors is to maximize on shareholder wealth while considering the motivations of the management team. Often times, these interests are maintained through executive compensation packages that engage managers and executives to perform with regard to the best interests of shareholders. These executives are being incentivized through bonuses in the form of huge bonuses, stock options and awards. Many believe these rewards have become obscene and are in no way reflective of executive level performance. History of Executive Compensation Levels Looking back 50 years, chief executives were making approximately 20 times the amount of the average organizational employee; in 2013, these executives have been said to be earning 300 times the average worker. â€Å"The Securities and Exchange Commission approved a rule in August 2015 that will require publicly traded companies to disclose the ratio of CEO pay to the average employee pay (Anderson, Carol, 2015).† The Dodd-Frank Act will require all public companies to disclose the actual ratio of top level executives to the average compensation within an organization. This requirement allows shareholders a guide by which they can measure pay scales across organizations in industry. Many believe this rule will enforce organ In 2013, the average compensation for top tier executives equated to $13.9M, an increase of nine percent from that of 2012. 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