The CEO Compensation Controversy

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : HROB020 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


HR concepts and issues
Case Length : 12 Pages
Period : 1998 - 2001
Pub Date : 2003
Teaching Note : Available
Organization : Varied
Industry : Varied
Countries : India, USA


The case discusses the reasons behind the high compensation of top executives and CEOs in particular. It examines the evolution of the CEO compensation structure over the years, and why it has become a controversial issue. The case also examines the various components of the compensation structure of a CEO and the implications of high CEO compensation on the performance of the organization and on the morale of lower level employees. Finally, the case suggests some measures to solve the controversy


Various factors that influence, or are responsible for, high CEO compensation


  Page No.
The Best Paid CEOs 1
Background Note 2
High CEO Compensation - Justified or Not? 4
The Debate Intensifies 6
Exhibits 9

Key Words:

High compensation, top executives, CEO, evolution, structure, controversial, components, high CEO compensation ,morale, lower level employees, measures, solve, controversy

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