Discussion Board Post – Week 7
[ad_1]Discussion Board Post – Week 7
Paper format: APA
Number of pages: 1 page
Number of sources: 1 source
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Discussion board post needed to address both of the following:
Please discuss the following topics. Please make sure to give YOUR opinions in your words!
- In class, we address the importance of maximizing shareholders’ wealth. However, it seems like maximizing stock prices does not make sense, because investors focus on short-term results and don’t care about long-term consequences. What do you think? Please discuss.
- Required by the 2010 Dodd-Frack law, U.S. publicly traded companies must disclosure their median employee pay in addition to CEO pay, and the ratio between the two. According to the WSJ, at Humana Inc., the median employee made $57,385 while the CEO made 344 times that much, or $19.8 million, according to the health insurer’s proxy statement. Whirlpool Corp. says its median worker is a full-time staffer in Brazil earning $19,906 a year, while the CEO made an annualized $7.08 million, or 356 times as much. At medical-device maker Intuitive Surgical Inc., where the median employee was paid just over $157,000, the CEO got 32 times that or $5.1 million.
In your opinion, do you believe that executive compensation is so high because it reflects the competition to get the best talent, similar to sports acquisitions? Does the requirement that companies disclose such information benefit stockholders? Will the disclosure requirements benefit workers? Will the disclosure requirements give non-U.S. companies a competitive advantage? Please discuss.
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