Assignment Type: Individual Project Deliverable Length: 3 pages Points Possible: 100 Due Date: 3/17/2013 11:59:59 PM CT AP'A formatted references The Executive Compensation Committee of the Board of...

In recent years we have heard a lot about executive compensation and issues related to it, this topic got heated up more when economic downturn costs many employees their job, huge pay cuts, and when huge organizations like Lehman Brothers started filling for bankruptcy then employees, shareholders and for that matter stakeholders were all stunned. Their was and still their is an outrage in employees against the compensation benefit that an executive enjoys because of the proven fact that many a times executives risk the stability of the organization to earn their incentive, for an instance we can take Stock option wherein executive either manipulate the earning or repurchase the share in open market so as to inflate the share price of the organization and earn considerable amount of incentive out of it. We have seen huge job cuts, pays are decreasing and it undergoes serious performance evaluation, no or very less availability of job in the market especially in US as many organizations had outsourced their business unit to countries like China, India and other related country because of cheap labor market. So, the above mentioned reasons are enough to justify the outrage of these employees they always feel cheated as they think that not only they put their effort to do justice to their job but are also tax payers but they never gets any benefit out of it on contrary executive receives huge compensation and huge other perks and benefits even when the country was hit badly with recession. The employees are also fuming knowing the fact that they are asked to follow a lot of code of conduct and they have to undergo different performance evaluation method so as to prove their eligibility towards the work and organization but there is no performance evaluation metrics being set up for measuring the executive performance so as to save the business from any internal or external risk and pay them according to their performance.
For an example we can take Merrill Lynch Executive Compensation Bonuses wherein they paid $4 billion at the end of their fourth quarter of the year 2008, the same quarter when they lost $ 15.3 billion due to poor management. Critics had said and have written a lot about this case, legal action was also taken so as to inquire with...