The government should limit the amount of money that CEOs can be paid (their entire compensation package), based on a multiple of the average salary of the employees. Bonuses for executives should only be allowed if the same amount (or more) is allocated for employee bonuses.

Do you agree or disagree with the following proposal? Why? In explaining your answer, discuss your view of the appropriate role of government in regulating the business sector. How does your view address potential conflicts between different stakeholders?

The proposal: The government should limit the amount of money that CEOs can be paid (their entire compensation package), based on a multiple of the average salary of the employees. Bonuses for executives should only be allowed if the same amount (or more) is allocated for employee bonuses.

You might want to do some research before answering. See, for example, https://www.epi.org/publication/ceo-compensation-2018/

Think about WHY executives get so much pay now. What motivates Boards of Directors to offer so much? What would happen if they were limited in how much they could offer? Would they attract the same CEOs? Would the CEOs perform as well? Or if they increase worker pay to be able to justify higher CEO salaries, what are the implications of that. Do not brushed off the challenges by saying the government could make all the stakeholders happy because that isn’t very realistic.