Ethics-Governance: Article: Executive Compensation: Are Outsize Pay Packages Contributing to Corporate Malfeasance?

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Executive Compensation: Are Outsize Pay Packages Contributing to Corporate Malfeasance? Executive Compensation: Are Outsize Pay Packages Contributing to Corporate Malfeasance? The Challenge In addition to the equity issues raised by big pay gaps between executives and line workers, enormous compensation packages for executives, especially when they include large option grants, may create incentives for bad behavior. What's at Stake The gap between paychecks for average employees and the compensation of executives has long been an issue of ethical concern, and the gap is growing. Federal Reserve Chairman Alan Greenspan called this "a very disturbing trend." Recent research also indicates that outsized executive pay may present problems that go beyond questions of equity. Full Article: http://www.scu.edu/ethics/publ...05/executive-compensation.html


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