Buy custom Is Executive Compensation Ethically Sound?
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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1201 |
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In the next section of this paper you will understand why executive compensation is ethically sound.
When a corporation is formed a series of shareholder’s undergo a risk in their investment. They are investing money into a company and most of the times have one goal in place: “to maximize profit, and therefore, shareholder’s wealth...
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From this perspective, all legal business behaviours which are aimed at maximizing profit are in a fundamental sense, ethical†(Carr and Valinezhad. 1994, p. 85). This statement indicates executive compensation is ethically permissible as long as no illegal acts are being pursued. Executive compensation is also acceptable as long as the CEO involved is not increasing his or her wealth at the expense of others...
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