User Account

All Pages

Should the salary of the ceo be raised or not

Assignment Help Business Law and Ethics
Reference no: EM13866048

Ethical Scenario

You are Chairman of the Board of a fairly successful company. Many of the shareholders have been complaining about excessive compensation for the CEO of your firm, especially since employee wages are very low. They cite a statement by Warren Buffett that "the ability of corporations to rein in skyrocketing CEO pay is the ‘acid test' of corporate governance reform." You find that the CEO earns $22 million a year and the lowest paid worker in the company earns $22,000. This ratio of 1000:1 seems a bit high to you. A recent study published by the Economic Policy Institute indicated that CEOs at large firms in the United States make about 300 times more than the typical worker. Other members of the Board feel that since the stock has been going up, the salary for the CEO should be raised. Should the salary of the CEO be raised or not? If it should be raised, by how much? Should the salary of the CEO be decreased? Identify at least 3 courses of actions or alternatives.

1 What is the ethical dilemma or issue?

2 What are the alternatives or possible courses of action? Identify at least 3 alternatives.

3 What are your recommendations? In other words, of the several alternatives you identified, what do you think the company should do?

4 What is your rationale for your recommendations? In other words, why do you recommend this course of action?

Reference no: EM13866048

Questions Cloud

Accounting strategies to avoid paying income tax : One board member quoted what the CEO of Exxon once said: "I'm not a U.S. company and I don't make decisions based on what's good for the U.S." Should the company should continue or discontinue using accounting strategies to avoid paying income tax
Apply for a scholarship or grant : As a student, you will need letters of recommendation to find a job, to apply for a scholarship or grant, or to enter graduate school. Naturally, you will consider asking one or several of your college instructors. You talk to a senior you know to fi..
List an argument in favor and one against : What alternative methods of accounting were considered by the FASB?
What expressions enable the cpa to build a defense : What expressions enable the CPA to build a defense should the audit wind up in the courtroom? How does your analysis relate to the opening statement in the chapter by Abe Briloff?
Should the salary of the ceo be raised or not : Other members of the Board feel that since the stock has been going up, the salary for the CEO should be raised. Should the salary of the CEO be raised or not? If it should be raised, by how much? Should the salary of the CEO be decreased? Identif..
The decision making process within organizations : Power (1,500 - 2,000 words) ( APA format)  Reflect upon your personal and professional experiences in light of the course readings and discussions. Analyzing and applying the course concepts, critically answer the following questions:What is organiz..
The measurement and reporting of impaired intangible assets : How does the measurement and reporting of impaired intangible assets differ between IFRS and U.S. GAAP?
Example of a biological organism or process : Identify an example of a biological organism or process that has been used to create fracture resistant materials. Locate a relevant journal article (or articles) and describe the following:
What stage of moral development in kohlberg model : Assume an employee is directed by management to reduce recorded expenses at year-end by insignificant amounts individually but which are material in total. How might the employee justify her actions if questioned by the auditor with respect to no har..

Reviews

Write a Review

Business Law and Ethics Questions & Answers

  You have completed your investigationnbspon allegations

you have completed your investigationnbspon allegations against a plant employee of an acquired corporation lakes

  The treaty and accompanying implementing legislation

The treaty and accompanying implementing legislation were approved

  Nonverbal communication can affect communication

Create a 10-12 slide Power Point Presentation describing how verbal and nonverbal communication can affect communication in the following areas: Public announcement to the pressCommunicating with peers and inmates in a correctional facilityCommuni..

  How should they treat their team leader

When she is inevitably found out she returns the money, and her membership of the ACS is terminated, but she continues in her job. Several members of her team are also ACS members. How should they treat their team leader

  Discuss the emerging issues and trends

Identify and discuss the emerging issues and trends surrounding the reasons for why the topic was included in the Affordable Care Act (PPACA)

  Describe onenbspcurrentnbsplegislative bill related to the

the assignmentbriefly describe the issue you selected.describe two or three federal statutes that relate to the issue

  Describe the legal characteristics of proprietorships

Summarize the types of business entities and describe the legal characteristics of proprietorships and partnerships. Northwest Brands, Inc., is a small business incorporated in Minnesota. Its one class of stock is owned by twelve members of a singl..

  When looking at the relationship between social justice

when looking at the relationship between social justice and juvenile justice there are two over arching concepts when

  The juvenile explained that the victim had invited him to

a 12-year-old boy was caught in the act of sexually assaulting a 14-year-old female acquaintance by the victims

  What action lance and cadellacould bring against parramatta

Lance was riding his bike along a pathway that followed the edge of the Parramatta River in Western Sydney. Lance was an experienced cyclist. Explain what action or actions Lance and Cadellacould bring against Parramatta Council. Do not discuss dama..

  Summarize taylor reasoning and point

Imagine Stanley and Steinhardt had the opportunity to reply to Taylor's case. Compose that reply. Note: This prompt requires that you are able to summarize Taylor's reasoning and point to particular disagreements, then articulate reasons to reject..

  What are some of the challenges to business ethics faced

What are some of the challenges to business ethics faced in today's business environment? Provide examples. What are the elements of a crime? What are some examples of crimes that do not require scienter

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd