Explore BrainMass

Explore BrainMass

    Limiting the Bonuses of CEOs

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    In 200 words plase address this question - Should there be legislation passed that would limit the amount of a CEO's bonus? Would that be an unfair intrusion into private business? If, heaven help us, there ends being such legislation, how would such a law be written, e.g. tie a cap on bonuses to a scale of some type?

    © BrainMass Inc. brainmass.com March 4, 2021, 8:18 pm ad1c9bdddf

    Solution Preview

    What an incredible question! There would be no way such a law could be written and passed within a democratic and capitalistic country for the very reason they are democratic and capitalistic. By virtue of belief in markets to gain or lose, a CEO's performance is based upon their ability to navigate the market successfully and the reward for doing so is the bonus. Another problem would be the difficulty in drawing parameters for such limits. The first choices would be the type of businesses that exist, manufacturing, sales (retail and wholesale), delivery and transportation, agencies, services, educational, scientific, academic, ...

    Solution Summary

    A discussion of the reasons for not legislating the bonuses of CEOs. Included are reason why it would not work, reasons why it is unfair, and how the current government type would prevent such laws. Privatization is discussed briefly.