Watch the video titled, “The Top CEOs In America” (6 min 30 s). Be prepared to discuss. Video Source: Forbes. (April 4, 2012). The Top CEOs In America [Video file]. Retrieved from httpsss://www.youtube.com/watch?v=KpNKofRvDO8#t=59 This video can be viewed below.
• Watch the video titled, “25 Biggest Corporate Scandals Ever” (11 min and 40 s). Be prepared to discuss. Video Source: list25. (April 8, 2013). 25 Biggest Corporate Scandals Ever [Video file]. Retrieved from httpsss://www.youtube.com/watch?v=LrJaOOGJLW0 This video can be viewed from within your online course shell.
“CEO Performance Management”
From the first e-Activity, evaluate the fairness of the compensation packages for two (2) CEOs for a specific period, based on their organizations’ performance during that period in question.
Today’s economic conditions make decisions about compensation tougher than they used to be. When an organization has high inflation, it was easy to give people pay cuts by giving them no raise at all or a very low one. But because we have low inflation and people are very reluctant to cut nominal pay, it’s much harder to bring people’s pay down. Once again, you may see more of the effects going on when people are being hired.” This means when the economy hits a rough spot, the most obvious response is to institute hiring freezes and cut wages and benefits — actions which have a fast but very short-term effect on cash outlays.
From the second e-Activity, critique two (2) CEOs’ overall unethical behavior, and then suggest the primary manner in which the FORTX process could have mitigated the selected CEOs’ performance and compensation. Justify your response.