This paper investigates a series of normative principles that are used to justify different aspects of executive compensation within business firms, as well as the remuneration of lower-ranking employees. We look at how businesses perform pay benchmarking; employees’ engagement, fidelity and loyalty ; and the acceptability of what we call both-ends-dipping, that is, receiving both ex ante and ex post benefits for the same work. We make two observations. First, either different or incoherent principles are used to justify the pay (...) of executives compared to employees, or the same principles are applied differently. Second, these differences or inconsistencies tend to be to the benefit of executives and/or to the detriment of employees. We conclude by asking whether there is any reason for thinking differently about executive pay than we do about employee pay. Our analysis leads us to question the principles justifying current executive compensation and to wonder if these principles are potentially being instrumentalized to serve other ends. (shrink)

This paper investigates a series of normative principles that are used to justify different aspects of executive compensation within business firms, as well as the remuneration of lower-ranking employees. We look at how businesses perform pay benchmarking; employees’ engagement, fidelity and loyalty ; and the acceptability of what we call both-ends-dipping, that is, receiving both ex ante and ex post benefits for the same work. We make two observations. First, either different or incoherent principles are used to justify the pay (...) of executives compared to employees, or the same principles are applied differently. Second, these differences or inconsistencies tend to be to the benefit of executives and/or to the detriment of employees. We conclude by asking whether there is any reason for thinking differently about executive pay than we do about employee pay. Our analysis leads us to question the principles justifying current executive compensation and to wonder if these principles are potentially being instrumentalized to serve other ends. (shrink)

Though the revised edition of A Theory of Justice, published in 1999, is the definitive statement of Rawls's view, so much of the extensive literature on Rawls's theory refers to the first edition. This reissue makes the first edition once again available for scholars and serious students of Rawls's work.

"--Jeffrie Murphy, The Philosophical Review (forthcoming).

ABSTRACT:Debates about the ethics of executive compensation are dominated by familiar themes. Many writers consider whether the amount of pay CEOs receive is too large—relative to firm performance, foreign CEO pay, or employee pay. Many others consider whether the process by which CEOs are paid is compromised by weak or self-serving boards of directors. This paper examines the issue from a new perspective. I focus on the dutiesexecutives themselveshave with respect totheir owncompensation. I argue that CEOs’ fiduciary duties place a (...) moral limit on how much compensation they can accept, and hence seek in negotiation, from their firms. Accepting excessive compensation leaves the beneficiaries of their duties (e.g., shareholders) worse off, and thus is inconsistent with observing those duties. (shrink)

Valuing -- Morality and reasonable partiality -- Doing and allowing -- The division of moral labour : egalitarian liberalism as moral pluralism -- Is the basic structure basic? -- Cosmopolitanism, justice, and institutions -- What is egalitarianism? -- Choice, circumstance, and the value of equality -- Is terrorism morally distinctive? -- Immigration and the significance of culture -- The normativity of tradition -- The good of toleration.

Winner of the 1975 National Book Award, this brilliant and widely acclaimed book is a powerful philosophical challenge to the most widely held political and social positions of our age--liberal, socialist, and conservative.

In his Tanner Lecture of 1979 called ‘Equality of What?’ Amartya Sen asked what metric egalitarians should use to establish the extent to which their ideal is realized in a given society. What aspect of a person’s condition should count in a fundamental way for egalitarians, and not merely as cause of or evidence of or proxy for what they regard as fundamental?

Serena Olsaretti brings together new essays by leading moral and political philosophers on the nature of desert and justice, their relations with each other and with other values.

"Equality of opportunity for all" is a fine piece of political rhetoric but the ideal that lies behind it is slippery to say the least. This book defends a particular account of the ideal and its place in a more radical version of what it is to level the playing field.

I broadly explore the question by examining several common criticisms of CEO pay through both philosophical and empirical lenses. While some criticisms appear to be unfounded, the analysis shows not only that current compensation practices are problematic both from the standpoint of distributive justice and fairness, but also that incentive pay ultimately exacerbates the very agency problem it is purported to solve.

Social contract theorists often take the ideal contract to be the agreement or bargain individuals would make in some privileged choice situation. Recently, experimental philosophers have explored this kind of decision-making in the lab. One rather robust finding is that the exact circumstances of choice significantly affect the kinds of social arrangements experimental subjects unanimously endorse. Yet prior work has largely ignored the question of which of the many competing descriptions of the original position subjects find most compelling. This paper (...) aims to address this gap, exploring how attractive experimental subjects find various characterizations of these circumstances of choice. We find evidence suggesting that no one choice situation can fulfill the role that social contract theorists have hoped it would play. We also find that, contrary to what some prominent social contract theorists have expected, there is no robust relationship between an individual’s ranking of distributive principles and their ranking of various descriptions of the original position. In conclusion, we discuss the broader implications of these results for political philosophy. (shrink)

This book presents an entirely new answer to the question: “What is fair?” In their radical approach to ethics, Frohlich and Oppenheimer argue that much of the empirical methodology of the natural sciences should be applied to the ethical questions of fairness and justice.

The authors argue that a free market paradigm facilitates wealth creation but does little to distribute that wealth in a just manner. In order to achieve the social goal of distributive justice, the concept of a fair market is introduced and explored. The authors then examine three drivers that can help improve the lives of all people, especially the poor: civil society, its institutions, and business. After exploring the roles these drivers might play in developing fair markets, we describe three (...) enablers that serve as catalysts for change: the effects of globalization, the impact of technology, and the emergence of entrepreneurial activity. We conclude by making recommendations for establishing fair markets and provide exemplars of two firms that embody the arguments made in the article. (shrink)