Answered: Should executive pay at companies that…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Should executive pay at companies that have accepted bailout money be capped by the government?

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There must be a cap for the executive's compensation for those organizations which have accepted the bailout packages from the government. The reason behind this is, these organizations took the bailout packages which is mainly the money of the taxpayers and the common citizens. These companies and their highly paid management were not able to safeguard the financial viability of the organization and thus they do not have the capability to pay very high compensation to their high-level executives.

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