Restaurant chains and grocery store brands claim rising costs of ingredients, packaging, labor, and shipping have driven sharp increases in pricing. At the same time, the recent quarterly reports for many of these companies show profits that far exceeded market expectations. Consequently, the salaries for many CEOs of these companies have increased (some CEOs received over 100% increase in salaries compared to their salaries in 2020).

a) How could someone appeal to the shareholder primacy doctrine to give an argument in support of these increases in pricing and CEO salaries?

b) What objection can be made against the argument in a)?

c) Which side do you agree with? Why?