Executive Compensation Theories | Get Solution Now
For a number of years, executive compensation has risen far more rapidly than that of ordinary workers. In discussing excessive CEO compensation, one commentator suggested the following: Policies should be passed that boost both the incentive for and the ability of shareholders to exercise greater control over excess CEO pay. Tax policy that penalizes corporations for excess CEO-to-worker pay ratios can boost incentives for shareholders to restrain excess pay. To boost the power of shareholders, fundamental changes to corporate governance have to be made. One key example of such a fundamental change would be to provide worker representation on corporate boards. Finally, as a starting point, the Securities and Exchange Commission (SEC) should change the reporting requirements for corporations calculating their CEO-to-worker pay ratios to make them consistent over time and across firms; this will make these ratios far more useful to policymakers and the public. Which of those proposals, if any, should be adopted? Explain your reasoning. Are there any negative consequences that could follow implementation of these proposals? Evaluation The quality of your posting will be assessed, not your viewpoint. Your posting will be assessed based on your understanding, thinking, writing, communication, application, and documentation, using the rubric provided. To view the grading rubric associated with this discussion, click the Options icon (3 dots) in the top right corner of the page, and select Show Rubric. Engagement Click on Reply below to post an initial post to the discussion prompt by 11:59PM on Thursday of this week. Your Initial post must be at least 400 words and demonstrate course-related knowledge. Comment on at least two colleagues’ posts, by clicking on Reply below their posts, by Saturday,11:59 PM of this week. Response posts must be 150 words minimum, debate or substantiate the original post, and provide support for each reply post position.
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