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Thesis statement: "Why Are Company CEOs getting Higher Bonuses?"


biz09 1 / 5  
May 3, 2009   #1
Hi I need to write 5-6 pages argument/persuasion research paper on WHY CEO IS PAID/GETTING HIGHER BONUSES?

I need help with my thesis statement... Can anyone help me on this topic?
EF_Sean 6 / 3,491  
May 4, 2009   #2
CEOs for which company? Higher bonuses than who or what? Ideally, a CEO receives a bonus as a reward for leading the company to higher profitability. In some cases, though, other fees they get paid may be erroneously labeled as bonuses. In the case of AIG, for instance, the "bonuses" weren't really bonuses at all. They were retention fees, extra cash paid to ensure the executives stayed, because that was cheaper for the company than having to pay new executives to learn all of the interior financial systems of the company. Had the company not labeled them as bonuses, there never would have been such a public outcry over them. So, it depends which sort of bonuses you are talking about.
EF_Kevin 8 / 13,321 129  
May 4, 2009   #3
I looked at Dhwan's profile and it says he is in the U.S., so I assume this assignment was inspired by the recent AIG controversy. Dhwan, you are supposed to write a persuasive essay, so the focus should not be a question of "why." The focus should be an assertion. You can ask why CEOs get huge bonuses when the company needed to get government bail-out money... but after that rhetorical question, you should make an assertion

Read about AIG to get started. Then assert:

If the CEOs are supposed to be good leaders, they have to set a good example. They should not accept huge bonuses when employees are not getting paid enough, because employees will feel unappreciated.
michaelfrye1970 9 / 21  
May 4, 2009   #4
You need to research the facts of these bonuses some of the CEO's have been with the company and a good portion of there bonuses was wrapped up in stock options and don't have any real value, so back to doing some research first.
EF_Kevin 8 / 13,321 129  
May 4, 2009   #5
You need to research the facts of these bonuses. Some ...

...and a good portion of their bonus money was wrapped...

Michael, his essay is not necessarily about AIG. Above, I was just giving an example of a thesis statement he might use!
EF_Sean 6 / 3,491  
May 5, 2009   #6
Maybe his paper should be about AIG. Picking a specific company would allow Michael to clearly define what he means by bonuses. As I said before, CEOs get all sorts of different types of bonuses, for different reasons, so a general essay on bonuses will be very difficult to write coherently in only six pages. Writing about why AIG executives got bonuses when they had led the company into bankruptcy, and whether this should have been allowed, would be a much more manageable topic.
OP biz09 1 / 5  
May 5, 2009   #7
Thanks a lot Guys for helping me but this paper is not about specific company's CEO its about all the CEO's getting higher annual bonuses. Neither its about specific company too.
Abby002 3 / 24  
May 5, 2009   #8
Company gives bonus to a CEO because he/she is the person who make sure the company brings in profits and able to survive in a competitive business market. Without a CEO, company would not be able to run in a piece. In another words, they act like a brain of human body. They always being creative, innovative, and their's thinking is beyond than others, which a normal person can't imagine.

This paper required you to think about what is the CEO doing in the company? Why they get the highest salary? May be the bonus given is to keep the people who bring benefits to the company...
OP biz09 1 / 5  
May 5, 2009   #9
thanx a lot abbyT
EF_Sean 6 / 3,491  
May 6, 2009   #10
AbbyT is right, if you are talking about performance bonuses. Just remember that CEOs sometimes get other types of bonuses, and that your essay will have to distinguish between these.
OP biz09 1 / 5  
May 8, 2009   #11
I need help with peer review and organize this body paragraphs.

All the paragraph needs to be organized because its argumentative essay and also it needs to be in 3rd person only.

CEO Bonuses
What is CEO? What is the CEO's responsibility? Why does CEO's get paid higher compensations? Why does they high bonuses, stock option etc? America's corporate executives get paid huge sums of money. The CEO (Chief Executive Officer) is often but not always also the President of a company, reporting to the Chairman of the Board and board members. As a regulation, the CEO is the most important spokesperson for the company and is responsible for quarterly results. The CEO is also, typically, the best paid member of the company. CEO's get highest paid salary and plus other lots of things like bonuses, stock option, stock and much more. A CEO's responsibilities: everything, especially in a startup. The CEO is responsible for the success or failure of the company. Operations, marketing, strategy, financing, creation of company culture, human resources, hiring, firing, compliance with safety regulations, sales, PR, etc.-it all falls on the CEO's bear. The CEO's duties are what he or she actually does, the responsibilies doesn't delegate. Some things can't be delegated. Creating culture, building the senior management team, financing road shows and, indeed, the delegation itself can be done only by the CEO. The shareholder is none the wiser as to whether the CEO is still getting paid as much for a worse performance in 2008. And, later on they become conscious that what ever they have done in past for giving high bonuses to their Chief Executive Officer is not fair to their other workers and also to the other share holders.

As a CEO is top paying position in the corporation. They also receive bonuses, stocks, stock option and much more and don't forget they are getting their regular salary too. As operational worker's viewpoint the CEO's bonus is unfair too him and also to shareholders. Operational or floor employee who does most of the company's works; who manufacture and sell the company's product to their customer, they just get their salary which not even close to CEO's bonuses. CEO'S bonuses is higher then six digit number means they get their bonuses in millions. What does operational worker gets not even thousand dollars as their bonuses, and some company's worker gets nothing even they are in union. Union is the act of uniting or the state of being united. Decrease in CEO's bonuses and paid their operational worker.

Shareholder is any holder of one or more shares in a corporation. A shareholder usually has evidence that they are a shareholder; this evidence is represented by a stock certificate. Shareholder is known as corporation's financial institution. As Corporations get more shareholders they can expand their business more. The CEO's bonus is should be limited due to the company's profitability. Mostly the Board of Director (BOD) takes this decision but if the shareholders acquire the opportunity to vote for CEO's bonus in their annual shareholder meeting then it's their decision to decide whether their CEO get more bonus then he deserve. If shareholder is agree to the BOD, then they wont get as much bonuses or dividend as a company's shareholder. BOD will eliminate the shareholder's dividend and their bonuses.

Decrease in CEO's bonuses and paid their operational worker. The BOD should take this step so every employee treated fairly. If they give out bonuses to their executives employee then there won't be any fair to the operational worker. As I explained in above paragraph operational worker is root of the corporation. BOD should decrease in their top executive's bonuses and give raise in their salary by looking at their performance and also give those benefits to their floor employees.

Stimulus Plan Places New Limits on Wall St. Bonuses. Our Treasury Department place pay restrictions resemble, but are likely to trap more executives at many more companies and also to cut more deeply into the bonuses that often account for the bulk of annual pay. The restriction with the most bite would bar top executives from receiving bonuses exceeding one-third of their annual pay. Any bonus would have to be in the form of long-term incentives, like restricted stock, which could not be cashed out until the TARP money was repaid in full. The revised rules do not impose a formal cap on executive compensation, unlike the Treasury proposal. Under that plan, banks were barred from paying more than five hundred thousand dollars in salary until they repaid the TARP funds to the government. Banks were permitted to offer bonuses in restricted stock, since Some Bank Corporation's CEO declined their bonuses last year, due to poor performance and financial market crisis. They also prohibited banks from awarding restricted stock to 25 top executives equal to more than one-third of their annual cash compensation until the banks have repaid all the money owed.

Bonuses should be decreased by BOD and also be taxed on by Government. CEO receives their bonuses in larger amount and they get this as "cash value" which means there is no tax on it. If the governments start taxing on theses bonuses then more problems will create. Most people know that the rich people don't pay enough income taxes and our government doesn't take any step against it. By taxing on their bonuses most of the CEO's will decline or they will just going to take half bonus. They will think that if they accept the full bonus and if the Internal Revenue Services (IRS) incursion their houses then they have to pay tax on whatever is their income in Banks, Stocks, And Stock option etc.

The most important goal for corporate employees is to increase shareholder's wealth. Compensation should be directly tied to stock performance. If the stock performs well, the CEO should be compensated well because at his guidance, the company has increased wealth for every investor of the company. If the stock performs poorly, then the CEO should be penalized by cutting their bonuses and also their stock option.

From a business strategy viewpoint, maybe conserving cash is more important that retaining staff. The top performers will probably stay with you a little longer, but they need to be recognized today, and paid tomorrow. Here's what people recommend that CEOs do in this situation: look for people who really deserve bonuses. Recognize their achievements. Promise that as soon as the company returns to profitability, the CEO will reevaluate the bonus situation. Then pay delayed bonuses as soon as possible, before the CEO himself is eligible for a bonus or pay raise. Be careful in judging the payment of bonuses. There may be people who truly deserve them, even within a poorly-performing institution.
EF_Kevin 8 / 13,321 129  
May 8, 2009   #12
...is often (but not always) also the president of a company, reporting to...

...become conscious that whatever they...

Wow, you have a LOT of explanation in that first paragraph. Why not do a paragraph break in the middle and leave some of that explanation for paragraph two? Use the first paragraph to SUCCINCTLY assert your argument.

you used cool rhetorical questions as "attention-grabbers" at the start. Follow that by giving only 1 or 2 sentences of explanation and then assert your thesis as the last sentence of the intro paragraph.

A lot of the explanation in this essay should be chopped. This is not an expository essay. Use it as an argument.

Here's what people recommend that CEOs do in this ---- Here is what who recommends?

Okay, you are off to a good start, but now you need to revise to make it so that your argument is CLEAR by the end of the first para, and so that each para is persuasive. good luck!!!!
EF_Sean 6 / 3,491  
May 8, 2009   #13
Yep, Kevin's absolutely right. The explanations are long-winded and generally dull. Lay out your argument first, then use your explanations to make your case so that there is a reason for the reader to be interested in them. I wouldn't cut them altogether, though, as what a CEO is and does is sort of key to deciding if he or she deserves a bonus.


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