ASB Module 10 (4 Pages): CBC Video Case (Ch 8): CEO Pay: https://sports.yahoo.com/ceo-pay-005630146.html?guccounter=1Video Clip SynopsisHugh Mackenzie, a research associate for the Canadian Centre for Policy Alternatives, discusses the contentious topic of CEO compensation.
The Centre’s study reveals that Canada’s top 100 highest paid CEOs earned an average of $9.5 million last year, compared to the average annual salary of a full‐time Canadian worker, which was $49,510.
Mackenzie discusses why the gap is so wide and offers some recommendations for how companies should address executive compensation.
Questions:
1.Are CEO salary levels appropriate in comparison to compensation received by other employees? Why or why not?
2.Mackenzie indicates that the ratio of the pay at the top to the pay of the average employee is 193 times, whereas in the 1980s it was 40 times.
In terms of what you know about compensation from reading this chapter, what do you think are the impacts of this growing gap, and what (if anything) do you think should be done to address it?
