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Ethics of Executive Compensation

Do you think executives deserve to make around 200 times as much as the average worker? Is it ethical for managers to take large pay increases while laying off employees and when giving them only small raises? Are companies being socially responsible when paying executives premium compensation?

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There really are two sides to this argument. The majority of workers will invariably believe that executives are overpaid. However, on the other side of the argument, we have to look at a few facts. While executive compensation remains high, executives typically have a master's degree (at the minimum), and other forms of advanced training. Many executives are CPA's and some are attorneys. This leads us to two different facts: (1) executives have endured a higher degree of schooling and certifications than the average worker, and (2) executives have accumulated advanced knowledge through their various forms of training. In my company, for instance, we pay executives high. All of our ...

Solution Summary

This solution discusses the ethics involved in executive compensation. A thorough discussion is provided explaining each area regarding compensation issues. Reference are also provided.

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