Analyze the ethical challenges as well as any agency issues. In the same paper, explain how the 1933, 1934, and SOX Acts were reactions to financial crises arising from similar challenges.
Various financial scandals that have bee a characteristic of the past two decades has given raise to various legislative measures of ensuring the integrity of financial accounting. Yet still despite this, there are still a number of factors that have been of great controversy with regard to its ethicality and legality. These are whether higher executive pays that ranges between 200 to 475 times that of the average workers are justifiable, how fast reporting of budgeting delays should be carried out among others. This paper analyses the ethical challenges and agency issues faced ion whether higher executive pays are justifiable and how fast reporting of budgeting delays should be carried out. It also looks at how the 1933, 1934 and Sarbanes Oxley (SOX) Acts were reactions to financial crises arising from similar challenges.
Ethical Challenges and Agency issues on Executive compensation issue:
Ethical challenges and agency issues with regard to the high compensation rewarded to executives has been a matter of great debate over the past debate with major differing line being the justification and ethicality of the practice. The ethical challenges that are noted in this matter is whether it is ethical for executives to earn between 200 to 475 times that of the average workers in the company, whether executives believe that all or most of the appreciation for the good performance of the company should be attributed only to their talent, whether excess executive pay should be addressed by government legislation, whether the rarity of executive talent matches the absurd high compensation that they receive relative to other employees in the ...
The ethical challenges and agency issues are examined.