Investors given more say over executive pay
Issues of ethical behaviour confront managers at all levels of business. Simply because an action is legal does not necessarily make it ethical in a given situation. Because values vary, the question 'What is ethical behaviour?' may be answered differently by different people. Recently in Australia, the Productivity Commission made recommendations to give investors more say over executive pay. The outline of the reform package by Kathy Swan, and Alan Kohler's interview with co-author of the report and former ACCC chairman, Allan Fels, provides insight into the debate regarding executive pay. "It's very hard to explain to people why someone needs $10 million a year to get out of bed in the morning and go to work."