ETH201H1 Lecture Notes - Lecture 3: Lemonade Stand, Fiduciary, Opportunity Cost
Document Summary
Topic: ceo compensation and salaries: are the salaries morally justified/defensible. Ratio is high between worker and ceo esp in canada and us. The average ceo works about 13 hours a day, about per hour. 100% chance in employment earnings after adjusting for inflation with ceos, compared to. So what"s morally wrong about this: 2 more or less opposed to one another, two business ethicists. The best way is to use the market: figure out what the supply of ceos is, and what the demand is, and there goes the price of the ceo. If a board of directors decides to pay a ceo 9. 8 million dollars a year, that"s how to determine ceo talent. If they offered less, they wouldn"t get the ceo. In the current market conditions, that"s the way to pay. If you walk into the store, and the item is 5$, 5$ is what you have to pay if you want that item.
