If you need an accessible version of this item please contact JSTOR User Support

Application of Distributive Justice Theory to the CEO Pay Problem: Recommendations for Reform

Paul G. Wilhelm
Journal of Business Ethics
Vol. 12, No. 6 (1993), pp. 469-482
Published by: Springer
Stable URL: http://www.jstor.org/stable/25072424
Page Count: 14
  • Download PDF
  • Cite this Item

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support
Application of Distributive Justice Theory to the CEO Pay Problem: Recommendations for Reform
Preview not available

Abstract

An ethical analysis of chief executive officer (CEO) salaries can be approached via theory on distributive justice and an examination of some corporate codes of ethics. U.S. CEO salaries are compared with their Japanese and European counterparts, and factors behind the high U.S. CEO salaries are reviewed. The negative repercussions of high pay are discussed, including feelings of unfairness, declining morale and greater cynicism found in lower level employees. Reduced research and development budgets, and downsized organizations are related to the maintenance of high CEO salaries. After considering economic repercussions, recommendations for reform, which lead to the greatest expected benefit of the least advantaged, are made.

Page Thumbnails

  • Thumbnail: Page 
[469]
    [469]
  • Thumbnail: Page 
470
    470
  • Thumbnail: Page 
471
    471
  • Thumbnail: Page 
472
    472
  • Thumbnail: Page 
473
    473
  • Thumbnail: Page 
474
    474
  • Thumbnail: Page 
475
    475
  • Thumbnail: Page 
476
    476
  • Thumbnail: Page 
477
    477
  • Thumbnail: Page 
478
    478
  • Thumbnail: Page 
479
    479
  • Thumbnail: Page 
480
    480
  • Thumbnail: Page 
481
    481
  • Thumbnail: Page 
482
    482