Skip to main content Accesibility Help
×
×
Home

Dialogue: CEO Compensation

  • Robert Kolb and Jeffrey Moriarty
Abstract:

In this journal, Jeffrey Moriarty argued that CEOs must refuse to accept compensation above the minimum compensation that will induce them to accept and perform their jobs. Acting otherwise, he maintains, violates the CEO’s fiduciary duty, even for a CEO new to the firm. I argue that Moriarty’s conclusion rests on a failure to adequately distinguish when a person acts as a fiduciary from when she acts on her own account as a person. Further, Moriarty’s argument assumes that the CEO knows this minimum level of compensation. However, we learn the suitability of compensation only through the market process of wage negotiation, not through some process of introspection. I conclude that a CEO who abstains from interfering with the board of directors and its compensation committee is morally free to negotiate for the highest wage available.

Copyright
References
Hide All
American Civil Liberties Union. 2011. Equal pay for equal work: Pass the paycheck fairness act. Available at http://www.aclu.org/womens-rights/equal-pay-equalwork-pass-paycheck-fairness-act. Accessed February 25, 2011.
Bebchuk, L., & Fried, J. M. 2003. Executive compensation as an agency problem. Journal of Economic Perspectives, 17(3): 7192.
Bebchuk, L., & Fried, J. M.. 2004. Pay without performance: the unfulfilled promise of executive compensation. Cambridge, MA: Harvard University Press.
Boatright, J. R. 2009. From hired hands to co-owners: Compensation, team production, and the role of the CEO. Business Ethics Quarterly, 19(4): 47196.
Heath, J. 2009. The uses and abuses of agency theory. Business Ethics Quarterly, 19(4): 497528.
Marcoux, A. M. 2003. A fiduciary argument against stakeholder theory. Business Ethics Quarterly, 13(1): 124.
Moriarty, J. 2005. Do CEOs get paid too much? Business Ethics Quarterly, 15(2): 25781.
Moriarty, J.. 2009. How much compensation can CEOs permissibly accept? Business Ethics Quarterly, 19(2): 23550.
Pincus, L., & Shaw, B. 1998. Comparable worth: an economic and ethical analysis. Journal of Business Ethics, 17: 45570.
Rowan, J. R. 2000. The moral foundation of employee rights. Journal of Business Ethics, 24: 35561.
Werhane, P. H. 1999. Justice and trust. Journal of Business Ethics, 21: 23749.
Wolf, S. 1982. Moral Saints. The Journal of Philosophy 79:8: 41939.
Bebchuk, L. A., & Fried, J. M. 2004. Pay without performance: The unfulfilled promise of executive compensation. Cambridge, MA: Harvard University Press.
Cohen, G. A. 2000. If you’re an egalitarian, how come you’re so rich? Cambridge, MA: Harvard University Press.
Kolb, Robert. 2011. Must CEOs be saints? Contra Moriarty on CEO abstemiousness. Business Ethics Quarterly, 21(4): 67986.
Moriarty, J. 2009. How much compensation can CEOs permissibly accept? Business Ethics Quarterly, 19(2): 23550.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Business Ethics Quarterly
  • ISSN: 1052-150X
  • EISSN: 2153-3326
  • URL: /core/journals/business-ethics-quarterly
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Metrics

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed