Drawbacks of legislation

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Ben and Jerry's made the news some years ago by limiting their CEO's payto 7 times that of the lowest paid worker in the firm.

(a) Suppose you serve on the board of Firm X. What would be the pros and cons of your firm adopting a similar policy?

(b) Suppose Congress legislated that ALL firms have to adopt this pay/incentive practice. What would be the drawbacks of such legislation?

Reference no: EM131206119

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