Scenario In the business environment, there is a discussion of the more specific

Question

Scenario

In the business environment, there is a discussion of the more specific issue of compensation of top executives. Are CEO's overpaid? This assignment asks you to apply the ideas about justice and about the general issue of income inequality to the question of whether any policy should be adopted to restrain executive compensation in order to reduce inequality, and if so what policy?

Question:

What are the important values/principles you think need to be considered, including at least one conflict between values (consider using a list.)

Explanation / Answer

CEO compensation consists of salary and many other variables such as bonus , stock option plan ,allowances and deferred compensation which increases the value of their compensation like anything.

CEO are the one who is responsible for making vision and mission of the organisation and they give their hard work sweat and blood in accomplishing that . Becoming a CEO and management of whole company is a big responsibility and not an easy task so getting them extra benefits is what they deserve . If they are receiving such compensation structure then it is what they are capable of . But if they don't do such hardwork they just sit and earn then this much high salary and benefits are biasness to other executives. If CEO are not accountable for stakeholders, stockholders and the public then the overpay is just not rational.

A hierarchy is need in an organisation from CEO to the bottom line employees to do different types of work , and so is the compensation structure differs with each level to some extent it is required as if all will work in same designation only one set of work will complete and ego clash will be their if their is no hierarchy so equality in an organisation will may hamper its process. So the equality should be their in compensation but according to their job profile , their hardwork and no comparison should be made on the basis of designation . The top executives also have to pay very large amount of tax from their salary do enjoy a lot but if they are giving their sweat and blood they are deserving of that .

The important values / principles need to be considered are:

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