1. A fair wage? Capping the executive compensation?

Executive compensation has been a target for criticism by stakeholders and academics over the past several years. Executive compensation has risen dramatically in past decade. In a survey conducted by Business Week, excluding stock options, executives received a 39% increase in compensation in 1996 while the salary of the average worker increased by only 3% (Nichols & Subramaniam, 2001). In another study of the compensation levels for S&P 500 firms, Bebchuk & Grinstein (2005) discovered that CEO compensation increased a dramatic 146% for the period of 1993-2003. In addition, the compensation levels of the top five executives of S&P 500 firms increased 125% in the same period. These increases are difficult to comprehend considering profits and stock prices of the S&P 500 only increased by 11% and 23% respectively (Nichols & Subramaniam, 2001). Although the increase in market value created an environment for increasing compensation without much criticism from outsiders, are these levels justifiable?

Using theoretical perspectives of Egoism, Deontology, Utilitarianism, Virtue and Justice, judge the issue of executive compensation and its capping A fair wage? Capping the executive compensation?

Executive compensation has been a target for criticism by stakeholders and academics over the past several years. Executive compensation has risen dramatically in past decade. In a survey conducted by Business Week, excluding stock options, executives received a 39% increase in compensation in 1996 while the salary of the average worker increased by only 3% (Nichols & Subramaniam, 2001). In another study of the compensation levels for S&P 500 firms, Bebchuk & Grinstein (2005) discovered that CEO compensation increased a dramatic 146% for the period of 1993-2003. In addition, the compensation levels of the top five executives of S&P 500 firms increased 125% in the same period. These increases are difficult to comprehend considering profits and stock prices of the S&P 500 only increased by 11% and 23% respectively (Nichols & Subramaniam, 2001). Although the increase in market value created an environment for increasing compensation without much criticism from outsiders, are these levels justifiable?

Using theoretical perspectives of Egoism, Deontology, Utilitarianism, Virtue and Justice, judge the issue of executive compensation and its capping