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Dba 7553 Unit Viii Article Critique

In: Business and Management

Submitted By bwpedraza
Words 585
Pages 3
Unit VIII Article Critique
Columbia Southern University
DBA 7553

1. Introduction of the Article This article is found in the Directors and Boards magazine. It is written by Donald P. Delves who “is president of the Delves Group, a compensation and corporate governance consulting firm that advises boards of directors” (Delves, 2012). The article is titled “What about everyone else? The problem may not be that executives are paid too much, but that employees are paid too little.” 2. Statement of the Problem Studied In this article, Mr. Delves examined why people complain about executive pay, how companies used to inflate employee earnings, and how companies can increase employee wages now. 3. Significance of the Problem Studied With sky rocketing pay for many executives over the last few decades, many employees have wondered why their pay has not also increased. In the past companies have used stock options to provide incentive for employees and to use these as a pathway to increase employee pay. However with the economic recession and many of the changes in accounting practices, companies could no longer use this incentive to increase wages for employees. Thus Mr. Delves presents the question, “what do we do about [increasing employee incentives]?” (Delves, 2012). If this question can be answered, it has the potential to not only increase employee productivity but also to provide them with increased opportunities. 4. Comments on the Article Many people complain and cannot understand why executives are paid so much money and why their pay continues to remain fairly constant. Delves states, “I have wondered for some time about why so many people continue to be so upset about executive compensation and corporate governance when we have made so much positive progress” (Delves, 2012). This spurred…...

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