Fairness And Control Of Ceo Pay - 1781 Words

LITERATURE REVIEW Introduction The first challenge addressed by this dissertation is ‘fairness’, which necessarily involves relativity. Shareholders may consider fairness in terms of company value added but employees may look at pay distribution. CEO’s may compare their compensation with other CEO’s and given recent increases in CEO pay, also over time. The second challenge is to understand the role that control may have in a fair pay system, what mechanisms are available and how likely they are to be effective. A substantial amount of literature was researched, and that chosen for inclusion in this review provides a broad range of views and information relating to these challenges. The themes of this review will therefore be fairness and control of CEO pay. Fairness Ground-breaking research (Hill, A., Mellon, L., Laker, B. and Goddard J., 2016) was conducted on the relationship between head teacher pay and performance in UK state schools and is relevant as its findings are applicable to CEO in general. British schools offer an excellent benchmarking opportunity as they generate standardised information in the same industry and country, therefore avoiding traditional benchmarking challenges. The study identified two particularly interesting styles of heads. ‘Surgeons’ act decisively, improving schools by removing poorly performing staff and students, ‘architects’ are slow-moving, meticulous planners who do things in sequence. In their first year, ‘surgeons’ targetShow MoreRelatedThe Integrative Model Of Human Resource1604 Words   |  7 PagesThe integrative model of human resource SHRM includes elements of both the control-based and the resource-based SHRM. Desired outcome dictates the elements that will b e employed. 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