dark
Hand-Picked Top-Read Stories
Trending Tags

Extremely high CEO salaries lack moral justification

Image: Rodeo Project Management Software / Unsplash

Society & culture

It is difficult to justify extremely high CEO salaries. In addition, many of the moral reasons that should explain wage differences are far too vague. It shows a dissertation in practical philosophy from the University of Gothenburg. Ever since the financial crisis in 2008, there has been a debate about how CEOs are paid and about the so-called “bonus culture” in the financial world. Some critics say that top executives earn disproportionately more than the average worker. Others argue that it is not the sums themselves that are the problem, but that the financial compensation becomes an incentive for excessive risk-taking in the financial market. Still others say that the top executives have only achieved what is expected of them. Moral right to serve differently? – I have started with the question “What is a fair salary?”, Which several researchers in moral philosophy do, but I go more in depth. It is important to ask why it is morally acceptable for someone to earn more than someone else, says Alexander Andersson, author of the dissertation. He describes the most common ideas about wage setting. Most people probably think that pay gaps can be justified on fairly uncontroversial grounds. Those who contribute the most to the company and society can be said to earn more than others. Another idea is that wage differences are permissible if they are the result of a fair wage negotiation between fully informed and free parties. Wage disparities can also be incentives to increase the productivity and efficiency of employees, or be justified from an equality perspective where well-being or realization of life can be seen as the central currency, which does not necessarily require everyone to have equal income. Difficult to “calculate” fair salary – It is important to analyze these reasons for salary differences as they have been used to criticize and to defend high CEO salaries. But it is extremely complex to “calculate” what someone deserves in a certain sense, and salary negotiations between the CEO and the board often risk being anything but free and balanced. Previous research has also shown that incentive-based wage setting entails more risks than benefits – for example, that short-term thinking is prioritized over a sustainable business model in order to meet the criteria for a bonus payment. In other words, there also seem to be efficiency reasons that speak against extremely high CEO salaries. Are there reasons for high salaries Alexander Andersson also highlights reasons for very high salaries. In one of the articles, co-authored with Professor Joakim Sandberg, they argue that it can be rational for companies to pay high salaries when many other companies do.

Then you assume a comparative perspective, where the important thing is to get paid at least as much as everyone else instead of what you deserve in any absolute sense. More philosophical work is required – But my conclusion is that the extreme wage setting is difficult to justify, however, the question remains how large the wage differences should be from a moral perspective. The reason for the latter lies in the weakness and ambiguity of many of the moral reasons we usually give for pay differences. More philosophical work is required here, especially regarding the concept of earnings, in order to be able to say something precise about what is an appropriate wage setting, says Alexander Andersson.

His dissertation also shows that more interdisciplinary collaboration is needed.
– Economists need to incorporate more moral-philosophical thinking when they theorize about CEO salaries. And philosophers need to lift their heads from the books and see how well their theories can be applied to the “real world.” More contacts between the disciplines would definitely have benefited future research, says Alexander Andersson.

Dissertation: Giving Executives Their Due: Just Pay, Desert, and Equality Contact:

Alexander Andersson, Department of Philosophy, Linguistics and Theory of Science, University of Gothenburg, alexander.andersson@gu.se .

Note: This article has been indexed to our site. We do not claim legitimacy, ownership or copyright of any of the content above. To see the article at original source Click Here

Hearth and Homestead: Handmade Whipped Tallow Balm (Unscented/Herb-Infused) - Organic Body Butter with Infused Olive Oil, for Eczema, Rosacea, Baby - 1.3 oz
4.8 out of 5 stars(4234)
$29.99 (as of December 18, 2024 19:32 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Apple iPhone 16 Pro, US Version, 256GB, Black Titanium - Unlocked (Renewed)
4.2 out of 5 stars(19)
$999.95 (as of December 18, 2024 19:04 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Magic Mill Food Dehydrator Machine | 5 Stackable Stainless Steel Trays Jerky Dryer with Digital Adjustable Timer & Temperature Control - Electric Food Preserver for Fruits, Veggies, Meats & Dog Treats (Renewed)
$36.95 (as of December 18, 2024 19:04 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Bubble cusion for Packing & Moving - 12" Width X 175 FT - Bubble cusion for Moving, Extra Protection for Shipping, Packaging Boxes & Mailers, Perforated Every 12 IN, Clear Cushioning Wrap
4.8 out of 5 stars(58)
$18.95 (as of December 18, 2024 19:04 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Owala Kids FreeSip Insulated Stainless Steel Water Bottle with Straw for Sports, Travel, and School, BPA-Free Sports Water Bottle, 16 oz, All The Berries
4.5 out of 5 stars(259)
$22.99 (as of December 18, 2024 19:11 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Index Of News Author
Related Posts
China aims to complete space station in another huge year in space thumbnail

China aims to complete space station in another huge year in space

by Andrew Jones — January 3, 2022 A view of the Sun on the horizon from Tianhe ahead of the Shenzhou-12 docking. Credit: BACC/CCTV/screenshot HELSINKI — This year, China’s main space contractor will target more than 40 orbital launches, including completion of the Tiangong space station, following 48 successful launches in 2021. The China Aerospace Science…
January 3, 2022
Read More
How Vitesco Technologies wants to extend the life of fuel cells by optimizing their control thumbnail

How Vitesco Technologies wants to extend the life of fuel cells by optimizing their control

Aline Nippert Publié le 28/09/2021à 10h00 Soyez le premier à réagir Pile à combustible dotée d'une unité de contrôle Vitesco. © Vitesco Technologies Le projet « Électronique de Contrôle pour véhicules à Hydrogène (ECH2) » de Vitesco Technologies – l’un des 14 lauréats du deuxième Comité d’orientation pour la recherche automobile et la mobilité (CORAM) – débutera…
September 28, 2021
Read More
Metabolism of autism reveals developmental origins thumbnail

Metabolism of autism reveals developmental origins

New insights have been provided by researchers at the University of California San Diego School of Medicine into the metabolic changes that take place between birth and the later onset of autism spectrum disorder (ASD) in children. The majority of these changes can be attributed to a limited number of metabolic pathways, according to the
May 10, 2024
Read More
How to spend seven days in Rajasthan, India thumbnail

How to spend seven days in Rajasthan, India

This article was produced by National Geographic Traveller (UK).Considered by many as the jewel in India’s crown, the state of Rajasthan has a magical quality to it. This is the land of maharajas, where palaces are adorned in frescoes, ancient temples are home to wise ascetics and fortresses dominate the skyline. From Jaipur’s pink-hued old
September 30, 2024
Read More
430-year-old ninja weapons possibly identified thumbnail

430-year-old ninja weapons possibly identified

Home News Weapons found in two castles in Japan could be ninja weapons, with some of the weapons possibly being the forerunners to the throwing star. Here, a hand-colored illustration of mid-18th century Japan and two ninjas. (Image credit: Pictures From History/Universal Images Group via Getty Images) Artifacts found in Japan may be ninja weapons,…
February 14, 2022
Read More
Index Of News
Total
0
Share