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Occupational Health and Safety, Canadian Edition

15th Edition
by David L. Goetsch, University of West Florida and Oskaloosa-Walton Eugene Ozon, Algonquin College
1035 Solutions 49 Chapters 1476 Studied ISBN: 0133450244 Computer Science 5 (1)

Chapters 15: DQ 10

10. LAST WORD Do you think exceptionally high pay to CEOs is economically justified? Why or why not?


Step-By-Step Solution

10. LAST WORD Do you think exceptionally high pay to CEOs is economically justified? Why or why not?

Answer: Student answers will vary. Supporters will point to the important decisions made by CEOs and their effect on overall firm productivity. High pay provides an incentive not only for current CEOs, but also for aspiring CEOs, further enhancing productivity. Critics argue that while pay gaps are necessary, they are excessive relative to the productivity differences. They further argue that stockholders are hurt because high CEO pay reduces company profits.


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