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  • Essay / Executive Compensation and the Free Market System

    Summary: Many academic institutions, such as Cornell University and the University of North Carolina, define an argument as a main idea, often called a claim, that is supported by evidence that supports the idea. The purpose of this article is to analyze the arguments made by Mr. R. Thomson on excessive executive compensation and the weather, he has succeeded in presenting a clear and convincing argument.Introduction: Mr. Roger Thompson is Editor-in-Chief of the HBS Alumni Bulletin . In his article “Excessive executive compensation: what is the solution?” Harvard Business School, it raises a crucial economic question regarding the relationship between the recent economic crisis and excessive executive compensation. It also offers a set of solutions to resolve the current crisis and prevent another one. Mr. Thompson does not believe that executive compensation practices themselves played a role in the financial crisis. Furthermore, he believes that the huge compensation and incentive plans led to the financial crisis. Mr. Thompson develops a strong argument about excessive executive compensation by presenting evidence to support his claim, using counterarguments from others who disagree with his position, and demonstrating a deep understanding of the question. It analyzes the issue from several perspectives: the government perspective, the CEO perspective, the research perspective, and the academic perspective. Evidence and Counterarguments The author begins by explaining how the government became involved in the financial sector by providing billions of dollars to large financial companies, such as AIG. The author claims that the White House and congressional leaders are trying to shift the balance of power out of the hands of the executive and management. The author...... middle of article ......to improve communication channels with senior managers. I certainly agree with Mr. Marshall, a research associate at the Center for Globalization Research, when he said, “ultimately, everyone is responsible in a position of power. Together, they all accumulated this bad debt. » (Marshall, 2010) Works cited D. Teather: According to The Guardian, the salaries of American leaders are extraordinary. Retrieved February 10, 2011 from: http://www.guardian.co.uk/business/2005/aug/04/executivesalaries.executivepay2 Bolton, P., Mehran, H. and Shapiro, J. (2010): “Executive Compensation and risk-taking. Retrieved February 11, 2011 from http://www.newyorkfed.org/research/staff_reports/sr456.pdf Andrew Marshall. Accessed February 9, 2011 from http://www.globalresearch.ca/Roger Thompson. (September 2009). Excessive Executive Compensation: What's the Solution, Harvard Business School..