Philosophy 2074F/G Chapter Notes -Buy Side
1 May 2013
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Do ceos get paid to much moriarty. Organizational theorists and economists tend to be more interested in what the determinants of ceo pay are than in what they should be. The desert view appeals to independent standards for justice in wages. What i will call the utility view conceived of wages not as rewards for past work, but as in incentives for future work. According to the utility view then a compensation package of 8 million per year is just if and only if it maximizes firm wealth by attracting, retaining and optimally motivating a talented ceo. Fortunately, it is not necessary to determine which view of justice in wages is correct to draw any conclusions about ceo pay. Until it is, we have reason to believe that the current level of ceo pay cannot be justified simpliciter. The problem occurs mainly on the buy side of the equation so we will focus our attention there.
