Corporations and CEOs

An organization is the sum of all the people that work in it. In these days of high pay packages for the higher echelons, the topic of bonuses for executives in companies that have stayed afloat with the taxpayer’s money raises the hackles of people. While Office Partitions are needed to create spaces that demarcate different sections of the workforce, a hierarchy of pay scales can get skewed when those in the higher perches are showered with millions. It cannot be rationalized under any circumstances and surely not when the same companies have been tottering on the edge or even keeled over, requiring the rescue of the money that belongs to society.

No citizen is conferred with extra rights because they pay more taxes. They are showered with encomiums by society and are bestowed with a high level of adulation and admiration. They do not receive any additional perks. In fact, they are given responsibilities such as paying higher taxes and maintaining high moral standards that can be aspired for by others who want to achieve bigger things in life. Within their organisations, the promoter is the visionary who has the spark to create a new enterprise and retains a large share of the profits. Here, the government has established the minimum wage so that the rights of employees are secured. As long as the company does well, the promoter rakes in the millions and the billions whilethe employees have a secure job. People who have made huge sums of money can give some of it back to society but they are not obliged to do so.

The problem begins when a company is owned by members of the public who have bought shares and need to be kept informed. The CEOs get huge salaries which are attributed to their skills of sustaining the growth momentum of the company. When companies are listed on share exchanges, there is a lot of impact from news about the company. The CEO acts as a steadying factor in turbulent designs and investors place a lot of reliance on the abilities of an individual. This trust stems from the way that the CEO has steered the company through the years and the personal contribution to the way that the products and services have been created. When such an influential individual is at the helm, it can help a company through rough patches as the experience and the principles of the person see the company through these times.

The issue of bonuses is what will rankle investors as it represents an extra payout to the CEO and the top management. Even if the company is doing exceptionally well, it will be a wrong signal when the CEO gets bonuses as that would make it appear as if it is the individual that has achieved the success. At times such as these, the company will come under the spotlight. When the company faces any tough situations, the issue of bonuses would be the first to be raked up.

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