The Ethics of Executive Compensation

$587.3 million. According to Equilar , an executive director requital firm, this is the combined total wages for the top 5 earning CEOs for 2011. According to USAToday ,the convening pay of top executives was $9.6 million in 2011 and the bonnie actor 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 total CEO made 40 times that of the number worker. These figures show the obvious inequality between executive payment 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 due to the effects of the financial crisis, the debate as to whether or non executive pay of this level is good or not has taken center stage in the media and public. It would be low-cal to imagine at the menstruum compensation ratio, th at the top CEOs on average make 380 times more than their average employees, and automatic friend conclude that this is un ethical. 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 in all sides and utilize a series of ethical tools.

Therefore, utilizing a series of ethical tests and theories, this paper will seek to develop an sure opinion as to whether or not its authors pin down such high executive compensation is ethical or not. Furthermore, using the ethical issue we will exam the ongoing US practice in paying huge executive compensati! on compared to the much lower pay levels for CEOs in worldwide 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 add of people. Based of this theory, high executive compensation would not be ethical. There are many...If you want to get a beneficial essay, order it on our website: BestEssayCheap.com

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