DB 4 Replies to Seth Deaver, Troy Scott, and Genna WebsterBMAL560 B05Susan GordonLiberty University
DB 4 Reply to Seth DeaverBMAL560 B05Susan GordonLiberty UniversitySeth, I appreciated your compassionate exhortation for researching before reaching a hasty consensus on whether executives are paid too highly, and I tend to agree with your position. My dad was a high-level company executive, and he did work very long hours filled with increasingly demanding responsibilities. Unfortunately, public perception seems limited to the dollar factor, and not to governance, adherence to regulations, and now, increased responsibility due to the more global aspects of the job. Edmans and Gabaix, 2016, show that, within the “shareholder value” view, while a compensation framework is a good idea, it does not always reflect the true effect a CEO has on the firm’s value in comparison to other employees (p. 1233). A company in high need of a talented CEO will pay a premium wage---the increase in a company’s corporate governance responsibilities alone requires greater attention on the part of the CEO, necessitating a pay increase (p. 1238). Novak and Bilinski, 2018, note a correlation in the social stigma attached to jobs, such as a morgue attendant; so-called ‘sin’ industries (gambling, alcohol, and tobacco) exert a negative impact on society at large due to the harmful effects of their products. Thus, executive remuneration is also considered negatively (p. 169). One needs to reflect on the company behind the CEO---PepsiCo products elicit a better public image than Remington’s firearms, often considered ‘weapons of harm’.
Dr. Fischer notes that mutual accountability and care show a covenant relationship (n.d.); this is
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