This assignment provides you with an opportunity to summarize ethics in financia

Question

This assignment provides you with an opportunity to summarize ethics in financial responsibilities and to evaluate ethical considerations of executive compensation by drafting a reflection paper. Write a 500 - word paper by addressing the following questions : 1. Do you think executive compensation in its various parts (i.e., salary, stock options, severance packages) funded at the current levels is unethical? If so, how would you revise the compensation so that it was just? On what basis would you change it ? Do es the government have a role to play? If so, in what manner? 2. Is the Sarbanes - Oxley Act too strict, not strict enough, or just right? Explain

Explanation / Answer

Answer: The compensation executives gets is not unethical. It is most imporatnt part of the company's overall financing policy. It seems at once that the executives are getting higher paychecks much higher than the other management subordinates. But in relity benefits of giving them such a high compensation are astoundingly overwhelming. The reaon is higher paychecks controls their behaviour to an extent and then these masterminds can work more aggressively to achieve the company's goals. The problem which is also known as agency problem can be averted with the help of this system of giving higher paychecks to the CEO's etc. This problems if goes unnoticed may bring more problems related to various aspects and then in turn this would be very difficult for the firm to manage it even the firm uses more amount of monetray resources to tackle it.

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