The Ethics of Executive Compensation

$587.3 million. According to Equilar , an administrator requital firm, this is the combined total pay for the top 5 earning CEOs for 2011. According to USAToday ,the median(prenominal) pay of top executives was $9.6 million in 2011 and the bonnie doer pay for the same firms polled was $34,000. According to the AFL-CIO , the ratio of CEO-to-worker pay is 380 times. This varies greatly from 1980 where the comely CEO made 40 times that of the medium worker. These figures show the obvious inequality between executive wages and average worker pay. Executive compensation has always been scrutinized by the public eye, but it has never been as much as it is now. With thousands being laid off, slow GDP growth, and increasing debt levels collectible to the effects of the financial crisis, the debate as to whether or non executive pay of this level is good or not has interpreted center stage in the media and public. It would be low-cal to anticipate at the menstruum compen sation ratio, that the top CEOs on average make 380 times more than their average employees, and automatic assistant conclude that this is un honourable. However, there is no credibility in doing so because if one is to come with a well assured and researched conclusion, no matter it is, its important to look at wholly sides and utilize a serial publication of ethical tools.

Therefore, utilizing a series of ethical tests and theories, this paper will seek to develop an informed opinion as to whether or not its authors retrieve such high executive compensation is ethical or not. Furthermore, using the ethic al issue we will exam the watercourse US pr! actice in paying huge executive compensation compared to the much lower pay levels for CEOs in ball-shaped firms from other countries. Utilitarian Theory created by philosophers Bentham and Mill, states that the most ethical decisions are the ones that bring the greatest good to the greatest philander of people. Based of this theory, high executive compensation would not be ethical. There are many...If you want to get a mend essay, order it on our website: BestEssayCheap.com

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