Are CEOs entitled to increases in compensation when their company’s financial situation worsens, because their job becomes more challenging?

Week 3 Business Homework

Read the Ethics Activity at the back of Chapter 6 (Links to an external site.) and answer the following:

Ethical Dilemma:

1. Are CEOs entitled to increases in compensation when their company’s financial situation worsens, because their job becomes more challenging?

2. If they fail, are they entitled to huge severance packages for their efforts?

3. Should companies be required to divulge all details of compensation for their highest top managers, and what effect is such disclosure likely to have on executive pay?