In this paper, I will analyze the summary of the article “Biggest Raises of the S & P 500” as well as discussing some of the managerial implications of the compensation programs. The report involves a description of the top ten CEO pay increases as compared to the market change in the year 2015. The author of the article argues that there are large companies such as Apple, Inc., Chipotle amongst others that had good deals of the year and were making good profits. Yet, in spite of the large profits, the CEO earned relatively lower as compared to others smaller companies. None of the CEO's from these large companies walked away with a significant rise in the year 2015. Among the S&P 500 companies, the chief executive officer of General Growth Properties got the highest increase. According to the article, Apple company CEO (Tim Cook) rose by $ 1 million to nearly $ 10.3 million, contrary to the General Growth group which did not break any record as far as its performance in 2015 is concerned, but still proceeded to award the CEO a hefty increase.
In addition, both operating earnings, as well as sales of the mall operator, chop went down to some extent. Despite some top companies having good performance, the CEO's are not reorganized in terms of remuneration. Compared to other companies, General Growth had a poor performance, yet its CEO got the rise.
There were some instances where some CEO had been in office for only one year and they got the recognition. About 190 companies in the S&P 500 witnessed a reduction in their salaries. Although the corporate profit of S&P 500 fell in the year 2015, some CEO had their wages increased while others deducted. The author also argues that some CEO, who had been at work for less than a year had their salaries raised while those who had served longer in some cases missed the raise. The article ends with a brief summing up of the wages boost of different CEO. A general idea of the article is that the writer tends to market some small companies with detailed evidence that it was comparing different companies (Gandel).
There are diverse marketing strategies that various marketers use to profile their companies in the market. For example, in this case, the marketer opted to compare the CEO compensation of other large corporations with his. The article thus arouses the suspense of the readers and they are able to follow the link and view the company in question. The marketing technique attracts personal attention as compared to the company brands and the products and thus it may not be an ideal strategy in marketing. Every marketing campaign should have a goal and objectives set and then aligned with the execution to reach the said goals. A comparison of the salaries implies a poor strategy to reward the best performers in as far as the company's performance is concerned negatively reflect on the company profile. A company like Apple which makes a huge profit does not have its CEO been the best to have the wage increased, neither the CEO does not appear among on the list. Therefore, the article creates a good picture of a poor compensation strategy that is used to increase salaries in the company under review.
Furthermore, according to the article, one is in a position to learn different ways of promoting a business. The article revolves on the marketing of the small companies by comparing it with larger ones thus creating awareness. Therefore, this article creates awareness of why one should market. According to the article description, one can show the supports those companies like Apple is an able company with global impacts as well as creating loyalty among the shareholders.
Gandel, Stephen. "These CEOs Got the Biggest Raises of the S&P 500." Fortune. N.p., 13 Apr. 2016. Web. 18 Apr. 2016.