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In-Class Debates
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CEO Pay

This chapter suggests several possible methods for determining the pay of CEOs in large corporations. Using the chart below, list the advantages and disadvantages of each method. Then choose one method as the best and in a one page essay explain why it is the preferred method.

 AdvantagesDisadvantages
Market determination of pay through supply and demand  
Maximum cap on CEO pay set by national legislation  
Pay set by independent board of non-affiliated experts  
Pay maximum set at a multiple of the average earnings of wage and salary owners  
Pay set by board of directors based on survey of comparable corporations  
(optional) Your alternative  







Schiller: Ess of Economics Online Learning Center

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