What’s Wrong with Executive Compensation?
Journal of Business Ethics · 2009 · Volume 85 · Issue 1
DOI: 10.1007/s10551-008-9934-6
Abstract
I broadly explore the question by examining several common criticisms of CEO pay through both philosophical and empirical lenses. While some criticisms appear to be unfounded, the analysis shows not only that current compensation practices are problematic both from the standpoint of distributive justice and fairness, but also that incentive pay ultimately exacerbates the very agency problem it is purported to solve.
Keywords
executive compensation, distributive justice, pay disparity, incentive alignment
Enable JavaScript for citation tools and additional paper interactions.