Why do CEO earn so much money?
Whenever news of the break -up or scandalous breaks of the company or scandalous breaks is amazed to know exactly how much the CEO or CEO of this company actually earns. While the company itself can be in serious financial straits with its employees and/or investors, the CEO often escapes a package of healthy severance pay, known as gold parachute , and begins to work with another company in months. Many people wonder why CEO earn so much money, and the answer is not always clear. While most employees and supervisors understand their specific responsibilities for the company, the CEO must have work knowledge of virtually all aspects of the company. This kind of knowledge does not collect overnight, so the ideal CEO is someone who has studied the industry as a whole and the internal functioning of a particular society. Salary corresponding to this amount of experiments, education and vision may be ZDAt high outsiders, but without a reserved CEO above, the company could easily lose its focus.
The other reason why CEO earn so much money is the business concept for performance. Shareholders and other investors want to see how their company remains profitable year after year, although external economic forces make it difficult. CEOs who can successfully direct their companies through the harsh economic sea and still come out in black color are often rewarded with considerable powerful bonuses and other financial incentives to ensure their continuing management and loyalty to society.
There are some CEOs who technically earn small or no money in real salaries. Because they already have considerable personal wealth, some CEOs are only asking for a nominal annual salary for tax purposes. This rejection of StandarIt does not mean that the CEO of a successful company, such as Apple Computers or IBM, will not become without a lady. CEO often earn more money through profit sharing plans, performance bonuses and patent or license fees. By not receiving a real annual salary from the company, the CEO may seem motivated by other reasons next to personal profit.
While many CEOs earn so much money from the performance of their society, they also understand their skills and business accumens on the market. Fighting companies are commonly looking for talented CEOs with proven records to help them avoid financial collapse. Because of this constant demand and a short supply of qualified CEOs, many companies pay incredibly high salaries to maintain their highest executives. If the opponent offers the CEO of the company a significant increase in salary and benefits for the jump of the ship,This offer can be compared or better to keep the CEO on board.
Overall, most CEOs do so many Money because they have made a number of personal victims over the years for the good of their companies and have the right to share profits. Some reckless CEOs undoubtedly used a system for personal profit but for other salaries they earn