According to Noted Economist Thomas Piketty

question 114

Multiple Choice

According to noted economist Thomas Piketty:

• A) top executives are entitled to any level of pay they can negotiate with their board of directors.
• B) the annual pay for top executives should include a small guaranteed salary and should include a very large bonus in years where the firm earns higher profits than competitors.
• C) all bonuses paid to CEOs should be tied to long-run increases in market share.
• D) CEOs should not earn much more than 10-20 times the earnings of the company's average salary.

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Definitions:

Reliability Capital

The value and trustworthiness that an entity or individual gains over time by consistently being reliable and meeting expectations.

Collectivism

A social theory emphasizing the priority of group goals over individual goals and the importance of cohesion within social groups.

Power Distance

A cultural dimension that reflects the extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally.

Social Distance

The level of acceptance and comfort between individuals within a community or society, often influencing social interactions.