What Are The Advantages And Disadvantages Of High Levels Of Executive Compensation? Sample Assignment

Executives are often seen as the most crucial person in the companies. Their daily tasks involve both multifarious management and challenging projects in order to promote companies growth and achieve business goals in the competitive business environment. Therefore, most corporations tend to provide decent wages and welfare to executives for their great contribution and irreplaceable value. Although the right executives deserve high compensation, some people suspect that it might bring the heavy burden and potential risks to the companies.

This essay will discuss both benefits and drawbacks of high levels of executive compensation. It will firstly consider the merits including affirmation and incentives for executives and attraction and conflict resolution for companies, and then it will examine the negative effect in relation to justice issue and limited incentives for staff and cost problem and reputation risk for companies. The most obvious advantage is the affirmation and incentives for executives. On the one hand, the high remuneration can be regarded as the affirmation for their hard work, loyalty and achievement to the corporations.

As Maslow’s five needs states, the esteem and self-actualization are the relatively high needs of human, which are usually obtained by professional, educated and trained person. The executives working at the key position are such groups of professionals who need satisfaction and affirmation from the organizations. On the other hand, it can motivate executives by arousing the potential capacity. According to Agarwal (2010, p. 28), although there are many perquisites, the most motivating factor for staff to work harder and perform well is money.

He further divides compensation into four parts, namely basic pay, short-term incentives, long-term incentives, and perquisites and benefits, and points out that the cash, which is the main element of basic pay, plays the most significant role in incenting those executives. Not only the executives but also the corporations can be benefited from high levels of executive compensation. First of all, the qualified executives from outside fields might be attracted because of the high remuneration bove the average, and the companies also increase the competition as a result of absorbing talents.

In addition, the relationship between shareholders and executives can be improved as well. Schubert and Barenbaum (2008, p. 28) argue that maximizing shareholder value is usually seen as a second goal of 7/1/2013 Tommy Le N8486666 Kasha – Class 07 executives because they are willing to maximize their own profits. To some extent, the executives will take shareholders’ profits into consideration if they satisfy with the compensation.

Top executives tend to persist in excellent management both in themselves and things around them, and they “wish to win in the shareholder performance game” (Schubert & Barenbaum, 2008, p. 28). Finally, high compensation is a mean to mitigate agency conflicts between shareholders and managers. As Feng, Ghosh, He, & Sirmans (2010, pp. 446–479) mentioned, high remuneration associated with the performance is effective in aligning executives’ interests with shareholders’, and they would like to join hand to pursue the same goal. However, high levels of executive compensation are not always beneficial to the staff.

In spite of incentives, the issue of distributive justice may exist in most of companies. According to Harris (2009, p. 150), the public view that executive pay packages seem grossly high, and the gap between managers and other corporate employees is increasing. Similarly, Welsh, Ganegoda, Arvey, Wiley & Budd (2012, pp. 262-263) consider that staff perceive their employment world as relatively “just” or “unjust” by comparing with other colleagues, and those of employees might discontent with the unfair compensation distribution.

Furthermore, the corporations may meet the awkward problem that there is limited space for further incentives. The professionals, especially top executives, need inner satisfaction from their day-to-day activities rather than money. Sometimes, they can be motivated extremely by providing them with challenging projects and the autonomous right to manage their work (Robbins as cited in Agarwal, 2010, p. 30). The high levels of executive compensation may also bring potential risks to the companies.

Executive compensation is a business expense, as Lawler (2009, p. 2) emphasizes, if the cost of executive compensation is out of control, those companies will reduce corporate earnings accordingly. It is such a heavy financial burden for the companies especially during the economic crisis. When serious crisis happens, companies will encounter such a dilemma: if the companies decrease the compensation, they cannot retain the key executives; if the companies remain the same levels of compensation, they may suffer from capital shortage, and even.

Moreover, the corporate reputation can be impacted by high executive compensation. Lawler (2009, p. 39) asserts that if executives are paid much but perform poorly, it will result in a negative impression of the effectiveness of companies and reduce the credibility of executives among the public. In conclusion, this essay has analyzed both the advantages and disadvantages of high levels of executive compensation.

For the executives, high compensation brings affirmation and incentives for their performance and achievement; however, the issue of distributive justice and limitation for further incentives cannot be ignored. For the companies, high compensation may attract more outstanding employees and mitigate agency conflict, but it is also blamed for the financial crisis and negative impression. Therefore, despite the positive effects of high levels of executive compensation, both executives and companies need more reasonable and competitive compensation to keep business improving rather than quite high one.

Divergent Plate Boundaries

The diverging plates below us are moving everyday; reshaping our world, slowly, but surely. These divergent boundaries are being studied around the world and they teach us about our evolved world, and its continuing evolution today. There are two types of divergent boundaries, the oceanic and the continental. These occur where their names have defined, within the oceanic crust and the continental crust. Both begin at the movement of the convection currents, which push plates up and away from one another.

The continental divergence starts above ground in its early stage, and gradually forms a rift that fills with water as the valley expands, and eventually completely rifts as the valley reaches below sea level. An example of this divergent zone in its early stage is the East African plate boundary, which is expanding to separate the African plate as well as the continent, into two. An example of this divergent zone in its complete rifting stage is the Red sea, which has fully developed; the valley below sea level.

This type divergent boundary had caused the separation of South America and Africa, which separated the continents, and turned into an oceanic divergence after the rift valley had sunken below sea level, and is still growing today. Oceanic divergences develop quite differently, as the convection currents lift the ends of the plates, forming a ridge, and their opening fills with magma and cools; this then repeats itself. The most famous oceanic divergent boundary is the mid Atlantic ridge, the 10,000 mile unseen mountain range that dominates as the longest of them all, making the Atlantic Ocean continually bigger, since the Triassic period.

This boundary has proven the existence of sea floor spreading, as Harry Hess was studying the ocean floor and found the crust’s ridges having newer rock at the middle of the ridge. Scientists are currently studying this ridge in Iceland, where the boundary runs right in the middle of the island, and will split the island in the future. Another example of this oceanic boundary is the Pacific Ridge, which is the fastest spreading mid ocean ridge; and is home to the discovery of hydrothermal vents, which are the result of the boundary, which heats up the seawater up to 340 degrees Celsius.

The hydrothermal vents in the Pacific support many communities of different organisms. This boundary is a part of a circumglobal system of active volcanoes, and extends for 2,000 miles. These boundaries diverge at a slow rate, but the faster of them all is the Pacific Rise, spreading at a rate of one to two centimeters per year. This speed gives the ridge a smoother topography than that of a slower spreading ridge, with a relief of only a couple hundred meters down the valley of the ridge.

The Mid Atlantic Ridge is one of the slower spreading ridges, and expands at a rate of 20 to 40 millimeters per year. This gives the ridge wider rift valleys, and a rougher terrain, that can have relief of up to a thousand meters in elevation. Divergent boundaries are a big part of our evolving world today and understanding their ways can benefit our living methods in this galvanizing world. Once we see the congenial aspects of understanding plate tectonics, understanding landforms and continental composition is made simpler. The world is ever changing, and so must the growing knowledge of mankind.


  1. “Divergent Plate Boundaries. ” Geology. com: News and Information for Geology & Earth Science. N. p. , n. d. Web. 12 Sept. 2012.
  2. “The East Pacific Rise. ” East Pacific Rise. N. p. , n. d. Web. 12 Sept. 2012.
  3. “Juan De Fuca Ridge. ” Juan De Fuca Ridge. N. p. , n. d. Web. 12 Sept. 2012.
  4. “LUMCON’s Estuarine Environment. ” Www. umcon. edu. N. p. , n. d. Web. 10 Sept. 2012.
  5. “Plate Tectonics : Plate Boundaries. ” Plate Tectonics : Plate Boundaries. N. p. , n. d. Web. 12 Sept. 2012.

Racial Discrimination In Herbie’s Life

Herbie’s mum (Mrs Waranda) was to humble and afraid to hate the white kids who teased her and the white men who had put her oldest boy in jail on a false charge, and the white women who stared at her as though she was the filth of the nation. This shows that she didn’t belong to the white culture and she was a part of the minority group in the town. * “He was different and us kids don’t like anything different”- Davey Morne. The white people in the story don’t life different people- evidence of that is how Herbie is constantly bullied at school and how Aboriginals are treated in the community. Kevin Andrews swearing and calling Herbie names- Davey Morne does the same. Kevin may have learnt from his family. Possible Context Sentence based on this last example: The narrator, Davey Morne, describes Herbie as an “Abo” and “boong”, racist terns that are also used by other white teenagers in the story, including Kevin Andrews. This demonstrates to the readers that beliefs and statements of those around us, which form part of our culture, can affect our own opinions and language. People are often influenced by culture without being aware of it. Located evidence of individual behaviour * Located evidence of others’ similar behaviour or culture in the story * Made a link between the two to fashion an argument that “people are shaped by their culture” In the text, Mrs Waranda was too scared to oppose the white people as she was a part of the minority group in the town. This was also the case as Herbie doesn’t speak up when the other kids bully him at school on a daily basis. This shows us that Herbie has been influenced by the culture around him to remain more reserved and to keep to himself.

Herbie and Mrs Waranda did not strike back against the white people as they were influenced by their own culture, and starting a fight wasn’t always the right way to solve things. Every day at school, Herbie has been called many racism names such as ‘Abo’, ‘boong’ and ‘nigga’ by his fellow classmates. Other members of the Aboriginal community are also referred to in similar ways by the white people in the town. The white people in the town said: “Boong-man, boong-man; the Warandas are all boongs”.

Through the opinions and behaviour of fellow peers and adults, people are influenced to think the same. This forms a part of our culture, and ultimately affects how we treat others. Also in the text “Herbie”, the white people in the town discriminated against the Aboriginal people as they were a different race, and couldn’t find a balance between the two cultures. The Aborigines lived differently to the whites, but the white people didn’t like people that were different, they didn’t want to accept the Aboriginal culture.

This causes disputes between the Aboriginals and the white community, for example when the Morgans fight with the Warandas after Herbie was mistreated in school. This comes to show that two different cultures have troubles coexisting as their ways of living clashes with each other’s values and beliefs. YOLNGU BOY * Located evidence of individual behaviour * Located evidence of others’ similar behaviour or culture in the movie * Made a link between the two to fashion an argument that “people are shaped by their culture” Evidence The ceremonies when the boys were younger which * Botj turns his back on Aboriginal culture when he becomes addicted to sniffing petrol and smoking and stealing * Lorrpu and Milika are initiated into manhood by the ceremony held by the elders * The 3 boys free the crocodiles that have been captured * Botj becomes involved with white culture – jail * Lorrpu taking on traditional hunting and medicinal techniques when they are on their way to Darwin The three main characters in the movie; Lorrpu, Milika and Botj set free some baby crocodiles that were captured by hunters.

In Aboriginal culture, the crocodile man, Baru, looks over and protects the people in the tribe. Since Lorrpu, Milika and Botj all believe that the crocodile spirit is guarding and shielding them from danger, their actions reflect what they believe in from their culture. This demonstrates that the boys are all being influenced by their culture, in their thoughts, decisions and actions. Lorrpu and Milika were chosen to be initiated into manhood through a ceremony held by the elders.

This ceremony is only held in the Aboriginal community when the tribal leader decides the boys are mature enough. Milika and Lorrpu change as they want to participate in the ceremony. They try to act more responsibly and learn more skills needed in life from the elders such as rope making. Both Lorrpu and Milika’s actions and thoughts are being influenced by their culture, which is evident after the ceremony. Milika, one of the main characters, aspires to become a football player or Essendon Football Club.

Many Aboriginal boys also play football and their family comes and watches them play. Although football is not traditional to the Aboriginals, the Aboriginal community have taken up the sport. The boys have been influenced by the white Australian culture that surrounds them. Poems * Located evidence of individual behaviour * Located evidence of others’ similar behaviour or culture in the poems * Made a link between the two to fashion an argument that “people are shaped by their culture” Evidence: “How they fenced us in like sheep” * “Set us up on mission land. Taught us to read, to write and pray” * “We’ll give to them what you can’t give. Teach them how to really live” * “Told us what to do and say. Taught us all the white man’s ways. ” * “As we grew up we felt alone. Cause we were acting white, yet feeling black. ” * “Oh, we have been benefited; we have been lifted with new knowledge, a new world opened. ” * “Suddenly caught up in white man ways, gladly and gratefully we accept.

In the poem “Civilisation” by Oodgeroo, it states that the Aboriginals were introduced to the white culture, and they found a way to make both traditional and white culture coexist. The Aboriginal people also accepted new ways of living such as using clocks, timetables, shoes etc. The poem says: “Oh, we have been benefited; we have been lifted with new knowledge, a new world opened. ” This shows how the introduced white culture has played a major role in shaping how the native people of Australia live.

Oodgeroo also discussed that although the Aboriginal people accepted the new way of life introduced by the white settlers; the Aborigines saw that the white men’s ways of living did not always bring happiness. The Aborigines adapted to a new way of living, being influenced by the totally new white culture. The poem “Took the Children Away” describes how the white culture dominated over the traditional Aboriginal culture. The white settlers forced the Aborigines to learn how to read, write and pray, gathering them on mission land. The Aborigines were introduced to a new culture that they had to accept.

The Aborigines were affected by the white culture that surrounded them, as they were being forced to live by the white culture. In the same poem, Archie Roach discusses how Aboriginal children that were taken away to a mission land sometimes returned to their original culture. “Cause we were acting white yet feeling black. One sweet day all the children came back. ” This demonstrates that even if you are separated from your original culture, you can eventually return to it, although the new culture imposed onto a person can never fully removed.