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The directors can get an external expert to help in their deliberations (Melbinger 7).
The board of directors who are making the executive pay decisions should consist of individuals who are able to reflect diverse viewpoints, but they should be too many. This will enable the directors to consider different options and choose from the best one. The right number of board members in the executive payment committee should also know what is required of them and be ready to do the right thing. They should be afraid to make decisions which touch on the company’s executives, as long as their decisions are in the best interests of the company as a whole (Reda, Reifler and Thatcher 5).
The Social Security Act of 1935 was passed during President Roosevelt’s first term as part of his New Deal program. The Act was passed in the back drop of rising poverty and unemployment levels after the Great Depression. The Act was drafted to take care of the needs of those mostly affected by the financial crisis at the time. These people included: the poor, the unemployed, widows, fatherless children and orphans (Attarian 85).
According to Attarian, wage and salary workers who were under the age of 65 and employed in commerce and industry sectors within the US were covered in this act. However, domestic workers in private homes, agricultural laborers, casual laborers, ship crew members and officers, Federal Government employees, individuals working in state and local governments, NGO employees and those who were self employed were could not enjoy the benefits of this act ...Show more


One of the mechanisms that directors can use for making decisions regarding executive payments is the use of independent directors. These…
Author : connellyangelit
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