Executive Compensation - Ethical Issues in Human Resource
Over the last few years, stakeholders and academics have been critical of executive compensation. Corporate leaders have been rewarded handsomely,
with stock options being the most common type of compensation. The incentives are intended to bring managers' and stakeholders' goals closer together.
Despite the fact Despite the fact that this theory promotes desirable behavior, many CEOs misuse their positions of power and engage in fraudulent
activities to enrich themselves at the expense of the corporation's stockholders. The ethics of executive compensation will be examined in this paper.
The first section explains why compensation has risen to such high levels, then moves on to a consideration of dominant ethical norms attitudes held
by corporate leaders, and how these viewpoints create the setting for immoral remuneration practices. The following section examines three empirical
research that attempted to prove a relationship between CEO pay and corporates social responsibility. Finally, possible remedies to these issues are
offered, as well as last thoughts.