United States Executive Compensation Custom Essay

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United States executives are highly compensated in comparison with their counterparts in other countries. According to Kumar Et al. (2009) the executive of the American 500 companies which are well known and the biggest in the country recorded an average pay rise of 54% which was done last year. The total compensation after the raise totaled to USD 5.1 Billion up from the previous year which had recorded USD 3.3 Billion. The executives are increasing their salaries and compensations at a time when the United States economy is experiencing a decline and most of the companies are running at losses.

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He is followed by Ray R Irani who is the CEO of Occidental Petroleum which is also a United States Company with an average earning if $ 128.82 Million. The third highly paid is John B Hess who is the CEO of Hess which is a United States company with an average compensation of 39.68 Millions. According to the findings the majority of the top 100 executives are from United States (Liebman, & Hall, (2008)….

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In conclusion each company pay more than its competitors in an attempt to attract the best qualified personnel and try to retain them in the company for long. Such competitions in the market have pushed the compensation of the executives to rising way far ahead of other countries. Due to stiff competition in the market the executives are required to deliver by meeting target therefore performance is the one which is used when evaluating on the compensation…

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