Unit 4: PAY

A. Overview:

1. Fill the given words in blanks to complete the text below:

firms huge short-term stock options poor pharmaceutical

approach motivate stock options lavish extra flexible benefits

factory-floor rewarding directors revolt

saw remuneration workforce executive pay

This unit looks at pay, especially (1)……………….. A topical question is whether top managers and (2)
………….. deserve the (3)……………… pay package they are rewarded. This is a particular relevant issue
since the gap between executives’ pay and that of (4)……………. workers has widened in rich countries
over the past two decades. The late 1990s (5) ……………. a trend, particularly in the USA, towards (6)
…………….. executives with (7)………………. and other performance- related bonuses. This has become even
more controversial since some top executives continue to receive (8)………… rewards despite (9)……………
efforts and poor results. This has enraged shareholders in Britain and the USA, who have begun to (10)
……….. against excessive executive pay packages. For example, shareholders of (11)…………………….
company GlaxoSmithKline have recently failed to approve the proposed (12)…………………….. package for
the CEO. Companies are now exploring new ways to (13)………………… their top staff. Some argue that
offering employees stock options make no sense because this only contributes to (14)…………….. thinking.
Moreover, (15)………….. are often only available to top management in a company, and are only one way
of motivating a (16)…………... Another (17)…………….. to motivating staff to stay with a company is to offer
a range of (18)………… (including (19)……….. holiday, inexpensive insurance and car leasing), which (20)
………………. such as KPMG, Cadbury and Cable & Wireless have introduced.

2. What do you think the picture represents? (p.33- coursebook)

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3. What do you think the title “ Because I’m worth it” mean?

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4. Read the KEY NOTES then define the words in bold:

Compensation (N): …..

Pay (N): ………….

Pension (n): ……………..

Reward (v): ………….

.Salary (n):……………….

Serverance deal/pay (n)= …………….

Stock option: ……………..

B. Reading text

1. Read the title and answer the questions:

- What does the company name “GlaxoSmithKline” refer to?

…………………………………………………………………………………………………………………………………………………………..
……………………………………………………………………………………………………………………………………………………………

- Whose is the “pay package”?

…………………………………………………………………………………………………………………………………………………………..…

- What does the title “ The rewards of failure” refer to?

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- What is author’s attitude towards the executive’s pay package?

-Write a sentence to summarize the whole text:

…………………………………………………………………………………………………………………………………………………………..…

2. Read the whole text

Paragraph 1 is about …………

Realization (n):……..

At the sharp end of= …….

Outrageous (a): …………

To sink in=………….

Binding force= ………

Paragraph 2 is about …………

In a limbo= ………..

To discontent with= …………..

Large excecutive pay package= ……………..

Paragraph 3 is about …………

To strike= ………….

To cushion: ………….

To irritate= ……………

Superior (performance):………..

Paragraph 4 is about …………

Guaranteed (bonus)= …………………..

One-wat bet= …………………..

Paragraph 5 is about …………

To be cautious about smth: ………….

To fill position= ………………

Boardroon serach committee

To make a fuss= ………………..

Paragraph 5 is about …………

a. Answer the questions on p.34 (coursebook)

b. Do the vocabulary 1 (p.36- coursebook)

3. Rewite the following sentences without changing the meaning:

1. The shareholders voted to reject GXK’s remuneration committee’s report

…..
 2. The company is in a limbo

…..

3. “Fat cat” bosses paid themslves more or less whatever they liked

…

4. Fat cats are sometimes paid large sums to to leave the company

…

5. The change in public mood will mean that in the future salaries for chief executives
will be lower./

…

6. The public mood changes, the realization can take time to sink in

…

7. Executive pay is the rewards of failure.

…
4.Summarize the text within 5sentences

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5. Paragraph writing
“Executive pay is the rewards of failure.”
Use the information you have gained from the article from Unit 4 – Pay
to support the above statement. (7sents)