{"id":22775,"date":"2020-10-14T13:05:23","date_gmt":"2020-10-14T10:05:23","guid":{"rendered":"https:\/\/www.ibtdi.com\/?p=22775"},"modified":"2020-10-14T13:05:23","modified_gmt":"2020-10-14T10:05:23","slug":"executives-are-they-really-worth-their-pay","status":"publish","type":"post","link":"https:\/\/www.ibtdi.com\/en\/executives-are-they-really-worth-their-pay\/","title":{"rendered":"Executives: Do They Really Deserve Their Salaries?"},"content":{"rendered":"

 <\/p>\n

\"Shareholders<\/p>\n

 <\/p>\n

Executive pay has become highly controversial, especially recently. Abigail Disney, an heir to the Disney fortune, publicly criticized <\/span><\/p>\n

CEO Bob Iger\u2019s compensation package last year, which amounted to $66 million\u2014more than<\/span><\/p>\n

1,000 times the average pay of Disney employees.<\/span><\/p>\n

It was also revealed that Microsoft CEO Satya Nadella received a 66% increase, bringing his total <\/span><\/p>\n

compensation to nearly $43 million.<\/span><\/p>\n

Although we discussed the CEO\u2019s responsibilities in a previous article, here we\u2019ll explore them in a little more detail and weigh them <\/span><\/p>\n

against their salary to determine whether they truly deserve it.<\/span><\/p>\n

.<\/p>\n

Read also:<\/span>6 Important Tips to Consider Before Setting Employee Salaries<\/a><\/p>\n

.<\/p>\n

Challenges Faced by CEOs<\/span><\/strong><\/span><\/h2>\n

Every dedicated CEO faces many challenges, both internal and external. These challenges include <\/span><\/p>\n

The internal challenge is that they must continually hone their skills to better navigate changes in the market.<\/span><\/p>\n

External challenges include the need to stay informed about the market and its changes, as well as the need for <\/span><\/p>\n

strong public relations skills to build the company\u2019s reputation and help it seize opportunities.<\/span><\/p>\n

In a globalized context, the challenges facing executives are growing. They are now expected to understand not only their home <\/span><\/p>\n

markets, but global markets as well, as companies are no longer limited to a single country and have instead become <\/span><\/p>\n

international, transcending borders and geographic barriers.<\/span><\/p>\n

Despite everything that has changed, senior executives still have to do the job they have always done, which includes motivating <\/span><\/p>\n

employees, setting an example for the organization, helping define and scale the company culture, and understanding internal accounting, <\/span><\/p>\n

as well as presenting budgets and business plans to the board.<\/span><\/p>\n

If we put executive salaries in the context of these challenges, I think we would conclude that executives deserve <\/span><\/p>\n

their already high salaries.<\/span><\/p>\n

.<\/p>\n

Read also:<\/span>10 Steps to Set Your Employees\u2019 Salaries<\/a><\/p>\n

.<\/p>\n

Factors That Determine CEO Salaries<\/span><\/strong><\/span><\/h2>\n

To understand executive compensation properly, we need to understand how it is determined; <\/span><\/p>\n

There are many factors at play here. A CEO\u2019s salary is determined in part by comparing it with the salaries<\/span><\/p>\n

paid by other companies.<\/span><\/p>\n

On the other hand, an experienced CEO with a proven track record can deliver real value to a company. As a result, <\/span><\/p>\n

their experience and the value they can bring to the company are key factors in determining their salary. What\u2019s more, an in-house CEO\u2014that is, someone<\/span><\/p>\n

appointed from within the company\u2014doesn\u2019t earn as much as some people might think.<\/span><\/p>\n

If a company recognizes this and insists on bringing in an experienced CEO from outside, it understands how much it stands to gain <\/span><\/p>\n

from its revenues and profits.<\/span><\/p>\n

.<\/p>\n

Read also:<\/span>Pay and Performance Systems: How to Expand Your Salary Range<\/a><\/p>\n

.<\/p>\n

\"With<\/p>\n

CEO Responsibilities<\/span><\/strong><\/span><\/h2>\n

We should recognize that many responsibilities are handled only by the CEO. For example, the CEO is responsible for shaping the company\u2019s external meaning<\/span><\/p>\n

for the company. It\u2019s true that Peter Drucker, the renowned management expert, once wrote that \u201cthe purpose of a business is to create a customer.\u201d But the CEO <\/span><\/p>\n

doesn\u2019t create the customer; rather, the CEO creates meaning for the customer and sets the company\u2019s overall strategy, enabling it <\/span><\/p>\n

to serve that customer as effectively as possible. The CEO defines the company\u2019s \u201cexternal meaning,\u201d allowing it to look outward and open <\/span><\/p>\n

\u0622\u0641\u0627\u0642 \u0623\u0648\u0633\u0639.<\/span><\/p>\n

\n

One of the responsibilities handled only by the CEO is identifying competitive arenas where the company can win. Peter said<\/span><\/p>\n

Drucker: \u201cThe one task that only the CEO can perform is to decide: What is our business? What should it be? What is not<\/span><\/p>\n

our business? And what should not be?\u201d<\/span><\/p>\n

Drucker\u2019s words may be brief, but they say that it falls to CEOs to take all the critical steps <\/span><\/p>\n

in the company\u2019s history.<\/span><\/p>\n

Resolving the tension between short-term and long-term priorities is sometimes a challenge as old as business itself, <\/span><\/p>\n

and it is a challenge the CEO must resolve by deciding how to balance returns from current activities with investment<\/span><\/p>\n

In a largely unknown and uncertain future.<\/span><\/p>\n

These are some of the factors that explain the high salaries of executives, who have been shown to deserve them if they do their jobs exceptionally well, <\/span><\/p>\n

after all.<\/span><\/p>","protected":false},"excerpt":{"rendered":"

    \u062a\u062d\u0638\u0649 \u0631\u0648\u0627\u062a\u0628 \u0627\u0644\u0645\u062f\u0631\u0627\u0621 \u0627\u0644\u062a\u0646\u0641\u064a\u0630\u064a\u064a\u0646 \u0628\u062c\u062f\u0644 \u0634\u062f\u064a\u062f\u060c \u062e\u0627\u0635\u0629 \u062e\u0644\u0627\u0644 \u0627\u0644\u0622\u0648\u0646\u0629 \u0627\u0644\u0623\u062e\u064a\u0631\u0629\u060c \u062d\u062a\u0649 \u0625\u0646 \u0623\u0628\u064a\u062c\u064a\u0644 \u062f\u064a\u0632\u0646\u064a\u061b \u0648\u0631\u064a\u062b\u0629 \u062b\u0631\u0648\u0629 \u062f\u064a\u0632\u0646\u064a\u060c \u0627\u0646\u062a\u0642\u062f\u062a \u0639\u0644\u0627\u0646\u064a\u0629 \u062e\u0644\u0627\u0644 \u0627\u0644\u0639\u0627\u0645 \u0627\u0644\u0645\u0627\u0636\u064a\u060c \u062d\u0632\u0645\u0629 \u0631\u0648\u0627\u062a\u0628 [\u2026]<\/span><\/p>\n","protected":false},"author":3,"featured_media":22776,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_ibtdi_aa_focus_keyword":"","_ibtdi_aa_secondary_keywords":"","_ibtdi_aa_audience":"","_ibtdi_aa_tone":"","_ibtdi_aa_summary":"","_ibtdi_aa_reviewer_name":"","_ibtdi_aa_reviewer_bio":"","_ibtdi_aa_reviewer_url":"","_ibtdi_aa_reviewed_date":"","_ibtdi_aa_service_id":"","_ibtdi_aa_related_ids":"","_ibtdi_aa_human_reviewed":"","_ibtdi_aa_disable":"","_ibtdi_aa_disable_links":"","_ibtdi_aa_sources":"","_ibtdi_aa_update_notes":"","footnotes":""},"categories":[491],"tags":[22528,7376,22529,19706,22530,22531,22532,22533,22527,22534,22535,22536,22537,22538,22539],"class_list":["post-22775","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-491","tag-22528","tag-7376","tag---ceo","tag-19706","tag-22530","tag-22531","tag-22532","tag-22533","tag-22527","tag-22534","tag-22535","tag-22536","tag-22537","tag----doc","tag-----2020"],"_links":{"self":[{"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/posts\/22775","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/comments?post=22775"}],"version-history":[{"count":0,"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/posts\/22775\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/media\/22776"}],"wp:attachment":[{"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/media?parent=22775"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/categories?post=22775"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/tags?post=22775"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}