Should you provide a higher salary offer to hire a job applicant who is the best negotiator? Should a supervisor fight harder for a pay raise for an employee who is perceived as “critical” to the unit? MBAO Executive CompensationĨ Ethical Perspectives on Employee Conduct involving pay Should “squeaky wheels” be rewarded? (those who complain the loudest) Should employees who are not liked or do not get along with others, yet in other respects perform effectively, be under-rewarded? Should a manager provide a counter-offer to an employee with an employment offer with a higher level of pay, if it exceeds that of other employees in the same job? MBAO Executive Compensationħ Ethical Perspectives of Supervisory Pay Decisions Rewards for Elite Individuals or Broad-based Pay Policies? Stock Options Profit Sharing or short-term bonuses Perks for Top Executives? Company car Large offices, special parking privileges Special retirement and health benefits for executives? Special executive severance policies (golden parachutes) MBAO Executive CompensationĦ Ethical Perspectives of Supervisory Pay Decisions Disclosure of Compensation Disclose procedures and policies for determining pay? Disclose amounts of pay for groups or individuals? MBAO Executive Compensationĥ Ethical Perspectives of Compensation Policies The use of consultants who bury contrary opinions to those of the top executive. Use of Consultants Finding consultants who are willing to justify favorable compensation for the top executive client. What should be the basis for appropriate comparison firms to determine the worth of the executive in the market? What should be the formula for determining stock option valuations? Selecting the appropriate central tendency statistical measure to compute the firm’s market position compared to competitors Median Mean Weighted Mean low high MBAO Executive CompensationĤ Ethical Perspectives of Compensation Policies Are ethics situational standards that depend on the context of the situation? What are the implications of accepting one of these ethics perspectives and excluding its alternative? MBAO Executive CompensationĬompensation Policy Supervisory Pay Decisions Employee Conduct involving Pay Ethics of Pay and the Law MBAO Executive Compensationģ Ethical Perspectives of Compensation Policies Are ethics enduring principles that represent absolute standards of conduct? Or… 2. Presentation on theme: "MBAO Executive Compensation"- Presentation transcript:Ĭompensation Ethics What are Ethics? 1.
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