How Much is Too Much? A Theoretical Analysis of Executive Compensation from the Standpoint of Distributive Justice

In analyzing the ethics of executive compensation, this paper examines the issue from the standpoint of three prominent theories of distributive justice. Applying each of these "ideal" theories to the question of how to structure CEO pay illustrates a variety of different objections and considerations. Surveying the theories together in one analysis - rather than considering each one independently - reveals a certain amount of common ground among them. The theoretical analysis reveals a convergent conclusion about the importance of open and fair executive selection and compensation-setting processes to the establishment of an ethically appropriate level of executive pay