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In the past 30 years, senior executive pay has increased dramatically in the UK, US and other developed countries, causing much debate and, at times, public outrage. In this book, Alexander (‘Sandy’) Pepper argues that inflation in executive pay is the result of a market failure, leading to inefficient pay practices as firms compete over recruitment.
But are executives themselves really the greedy, self-interested, fat cats of popular culture? Based on a survey of beliefs of over a thousand senior executives, Pepper and his colleagues found that business executives tend not to believe they are entitled to act entirely in their own self-interest. Instead, they expressed support for a range of ethical beliefs on inequality and distributive justice. Many believe that in a civilised society everyone has the right to an income that is sufficient for a dignified life, and that companies, not just governments, have responsibilities in this respect. So, Pepper argues, it is market failure that has created such wage inflation at the top, and this ultimately requires an ethical response from investors, companies and executives.
This is a book for anyone who wishes to understand and tackle business’s role in the growing social inequality of advanced economies in an informed, fair and feasible way.
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