Executive Bonuses

In US companies, some organizations pay bonuses to officers. Other than that, most of them earn six-digit annual salary. In the past few years, the country experienced a recession, many are unemployed and need work, and many companies are still shrinking. Therefore, I think that it is not logical for the company to pay such executive with such a big bonus. Companies should take on more social responsibilities by creating jobs for unemployed people and allocating a portion of the funds to directors' bonuses.

US executives often include allowances as part of their overall reward (Chingos, 2004). The base salary of the directors' bonuses officer, a large part of their wages is not fixed, there may be a right to receive a different salary is their reward is with their performance level. The purpose of this remuneration is an incentive to improve the performance of executives. For example, you can earn a reward for achieving a specific goal. One of the most common variable rewards is the so-called executive bonus.

Executive remuneration or officer compensation consists of monetary remuneration and other non-monetary remuneration received by executives from the company. It is usually the company's stock, salaries, bonuses, is a mixture of benefits and allowances of shares or call options, ideally, government regulations, tax laws, the desire of the organization and officers, as well as to take into account the remuneration for the performance It has been constructed. In the 30 years since the 1980's, executive compensation, but was rapidly increased in comparison with the wages of the United States of general workers, it is relatively small in other countries. Observers, this increase, significantly increase the shareholder value of large companies, or can become a socially harmful phenomenon brought about by the social and political changes make the senior management, natural and beneficial to the poor business talent competition I think that it is a result. They can better control their own wages

Executive compensation is another incentive for fraud. Executives such as Pomerantz and Polishan own a lot of corporate stocks, so they make a big contribution to Leslie Fay. In addition, executive bonuses are very lenient, sometimes exceeding annual salary (Knapp 34). Senior management that is a lot of investment to Leslie Fay through the stock and these huge bonus is likely to commit fraud for personal gain