Schermerhorn & Bachrach Exploring Management 6th edition Instructor’s Manual
Team Project 13: CEO Pay
Question
What is happening in the area of executive compensation and what do you think about it?
Instructions
1. Check the latest reports on CEO pay. Get the facts and prepare a brief report as if you were
2. Address the equity issue: Are CEOs paid too much, especially relative to the pay of average
workers?
3. Address the pay-for-performance issue: Do corporate CEOs get paid for performance or for
something else? What do the researchers say? What do the business periodicals say? Find
4. Address the social responsibility issue: Should CEOs accept pay that is many times the
amounts that workers receive?
5. Take a position: Should a limit be set on CEO pay? If not, why not? If yes, what type of limit
should be set? Who, if anyone, should set these limits—the government, company boards of
directors, or someone else?
Practice Critical Thinking: Salesforce.com – Instant Praise. Instant Criticism
Instead of waiting a year for a performance review, how would you like to know where you
stand and always get immediate feedback about how you’re doing? Some human resource
professionals call the annual performance review a “little more than a dysfunctional pretense.”
Enter Salesforce Rypple, a software solution which allows online questions to be posed to peers
and managers, including: “What did you think of my presentation?” or “What can be done
better?” Would more instantaneous feedback provide instant gratification? Or not?
1. DISCUSSION
Is the annual performance review— past its “sell by” date, or just in need of some revisions? If
real-time reviews are available using software like Salesforce Rypple, is there a need for an annual
performance review?
An academic review showed that two-thirds of 600 employees interviewed say the appraisal has
zero or even negative effects on performance after the feedback is administered. In essence,
critics argue that the performance review does not provide motivation for employees – very few