Compensation and Training Essay Example | Topics and Well Written Essays - 750 words

Compensation and Training - Essay practiceAmerica, the worlds largest economy, where the past decade a continuing bubble growing with continuous spending fueled by debts that suddenly burst when pecuniary institutions that were supposed to generate money ended up producing even more debt (U.S. Treasury Department, 2009).The US government responded immediately to the threat of a global monetary meltdown, gathering governments abroad and at the same time, was at the forefront of a Keynesian tactic of responding to impending depressions increasing government spending. Hence, the Troubled Asset Relief Program (TARP) was born. The idea behind this computer program is to appoint government to use federal funds to directly inject financial support to institutions to keep the financial sector afloat. It aims to purchase troubled assets, consisting mainly of the products of the subprime mortgage crisis. To manage this program, the Office of Financial Stability downstairs the Treasury Department was born. It has seven components namely (1) mortgage-backed securities purchase program (2) whole loan purchase program (3) insurance program (4) equity purchase program (5) homeownership preservation (6) executive stipend and (7) compliance (Treasury humans Affairs, 2009).The law specifically defines important requirements for firms that apply for the TARP. Executive compensation has been one of the thorniest issues that have struck common outrage when troubled companies continue to allow for astronomical compensations for its chief officers (Treasury Public Affairs, 2009).Executive compensation is a corporate term that describes how the management of big corporations is paid. Over the past thirty years, there has been a salient increase in the compensation of CEOs and other officers, far beyond the levels of an average worker. Five basic tools for compensation include a base salary, short-term incentives and bonuses, long-term incentive plans, employee benefits an d perquisites. The typical salary for CEOs