Chapter 16, Problem 1DQ

Summary Introduction

To determine: Whether many financial managers and corporate officers are often criticized for poor decisions, lack of ethical behaviour, larger salaries, lucrative severance packages worth million dollars and extravagant lifestyles during economic crisis.

Introduction: A financial manger who deals with all the vital budgetary elements of a business. The individual in control ought to keep up a distant sightedness so as to guarantee that the funds are used in the most effective way.

Explanation of Solution

The reasons on whether many financial managers and corporate officers are often criticized for poor decisions, lack of ethical behaviour, larger salaries, lucrative severance packages worth million dollars and extravagant lifestyles during economic crisis are as follows:

Evidently, the criticism is legitimized in certain cases.. Poor organization decisions were made by administrators at the DT auto organizations, AIG, LB, and WM and many. In the monetary zone, loans were given to individuals who could not bear the cost of them. Bad mortgages were attached to securities that were introduced as great ventures to investors yet were imperfect. Executive salaries and severance packages in the US are significantly higher than different nations, and the differential is difficult to legitimize by performance. It is essential, in any case, to comprehend that these issues are not regular over all U.S. or other international organizations. In spite of these issues, every single financial managers and corporate executives should not to be highlighted by a similar brush. Generally U.S. organizations are well kept running by capable and moral officials.