Do you believe that the CEO is compensated in a way so as to…
Do you believe that the CEO is compensated in a way so as to alleviate agency issues? That is, is the CEO compensated in a way so that he or she will always be thinking about adding value to the company when making decisions?Please explain your answer in a well-written, concise paragraph of 3-5 complete sentences (reminder: use good grammar, complete sentences, appropriate punctuation and correct spelling). Be sure to refer to Chapter 1 regarding ways to make the CEO act in the best interests of shareholders.
Read Details“In 2008, the average S&P 500 CEO, at $10.4 million, earned…
“In 2008, the average S&P 500 CEO, at $10.4 million, earned 280 times the approximately $37,000 annual pay of a typical full-time American worker.”Also, the multiple for a much larger set of companies that included very small companies was 68x the annual pay of a typical full-time American worker in 2008. That had risen from 40x in 1980.What do you think about the above reported facts?Explain what you think and why in a well-written, concise paragraph of 3-5 complete sentences (reminder: use good grammar, complete sentences, appropriate punctuation and correct spelling), Source: Boatright, J.R. Finance ethics: critical issues in theory and practice. 2010. John Wiley & Sons, Inc: New Jersey. p. 553.
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