Discuss whether economic theory and the available empirical evidence Essay

Discuss whether economic theory and the available empirical evidence justi - Essay Example During the time of peek economy the company has to endure extra remuneration and compensation for the CEOs. Moreover, there is always deliberate discussion over the compensation policy, especially during the time of poor company performance and financial crisis (Balsam, 2002). In this regard, the aim of the paper is to examine the effect in the executive compensation regardless of the poor performance of the company with the help of various economic theories and the empirical evidence. According to Bertrand & Mullainathan (2001) the remuneration of the CEOs in an organisation is based on the principle of the economic agency model. In accordance with this model, the firm owners act as the principal and the hired CEOs are the agents acting on behalf of the owner. The authors argued the fact that the shareholder pays a key role in the organisation in designing the remuneration system of CEO’s in order to maximise the value of the organisation. Moreover, the article examines the fact weather the CEOs are paid on the basis of luck or not. Luck represents changes in the performance of the company, which are beyond the control of CEOs. These three measures include the changes in the pricing trend, firm performance, and year-on-year dissimilarity in the organisational performance. The finding of the evidence revealed that in the different scenario the CEOs pay is significant to luck. Additionally, it has been revealed that in the organisation the payment is largely affected by the luck not with the performance. Pay for the luck has large influence over the discretionary components, including compensation, salary, and bonus structure. It has been determined from the study that mode of the corporate governance plays a crucial role that significantly influences the CEOs remuneration (Bertrand & Mullainathan, 2001). Moreover, the principle of agency model sometime helps the

Environmental Footprint Lab Report Example | Topics and Well Written Essays - 1000 words

Environmental Footprint - Lab Report Example This increase in carbon dioxide emissions results in increase in the global Earth temperature. Consequently, development of newer homes in areas that have been originally covered with forests results in increased carbon dioxide in the atmosphere, since the forests functioned as carbon sinks. In addition, same lifestyle among humans may result in degradation of ecosystems and loss of biodiversity. As the human population increases, new modifications on the landscape, such as creation of new structures, result in altering of the ecosystem of a place and disruption of the ecosystem processes. The ecosystem processes are controlled by the biodiversity in an area. If everyone enjoyed the same lifestyle, the rate of consumption of resources would increase rapidly. This would result in a decline, in the resource base for humanity. Changing human lifestyles, such as preferring fast foods to agricultural products can also result in decreased farming activities. This may lead to lack of food r esources necessary to support human population and, hence, may affect the economic security. Consequently, increase in human activities, such as deforestation, affects ecosystem processes, which reduces the productivity of land. ... In addition, turning down of the temperature of the heating thermostat by eight degrees Fahrenheit and the air conditioner by seven degrees Fahrenheit can provide savings of $24 and $42 respectively. This will save about 770 pounds of carbon dioxide from being released into the atmosphere. Activities, such as washing clothes in cold water instead of hot will save up to $10 annually and in the process there would be savings by 181 pounds of carbon dioxide emission. In addition, using the sleep feature in the computer will save $10 annually saving about 159 pounds of carbon dioxide emissions. In order to reduce carbon emissions, recycling products associated with foodstuffs can be used. This will save about 447 pounds of carbon dioxide. The total amount of carbon emissions saved by an individual amounts to 19,905 pounds. This produces savings amounting to $2,304 per year. For a population of 100 million in America, the total amount of carbon emissions saved would amount to approximatel y 1990.5 billion pounds of carbon dioxide saved per year. Therefore, the total savings in dollars would be about $230.4 dollars per annum. Implementation of these solutions will greatly reduce the amount of carbon dioxide in the atmosphere, which will result in maintaining a stable earth temperature. In addition, reducing the miles driven by vehicle will help improve the air quality, as the production of carbon dioxide from the vehicles will be reduced. Consequently, increased recycling as a measure to reduce pollution will help improve water quality, as most of products that were disposed in the waters will be re-used. Reduction in the emission of carbon dioxide in the atmosphere will improve the health conditions of humans especially those who have breathing