If You’re So Ethical, Why Are You So Highly Paid?

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 this soaring inflation in high pay is the result of a market failure, leading to...

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मुख्य लेखक: Pepper, Alexander
स्वरूप: Online
भाषा:अंग्रेज़ी
प्रकाशित: LSE Press 2026
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ऑनलाइन पहुंच:https://directory.doabooks.org/handle/20.500.12854/171554
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author Pepper, Alexander
author_browse Pepper, Alexander
author_facet Pepper, Alexander
author_sort Pepper, Alexander
collection Directory of Open Access Books
description 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 this soaring inflation in high pay is the result of a market failure, leading to inefficient pay practices that are replicated across industries. Individual company’s renumeration committees face a prisoner’s dilemma, and so recommend over-the-odds payments in the vain hope of obtaining superior talent. For institutional investors, these developments have created a collective action problem, with many historically unwilling or unable to intervene to curtail excessive corporate pay.But are executives themselves really the greedy, self-interested, fat cats of popular culture? Based on a thought experiment and survey of beliefs of over a thousand senior executives from around the world, Pepper and his colleagues found that business executives in fact tend not to justify their pay levels as if they were ethical egoists entitled to act entirely in their own self-interest. Instead, they expressed support for a range of ethical beliefs on inequality and distributive justice. They can be categorised as either welfare liberals, relational egalitarians, meritocrats or free marketeers. 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 the market failure in executive pay 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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spelling doab-20.500.12854ir-1715542026-02-12T10:38:18Z If You’re So Ethical, Why Are You So Highly Paid? Pepper, Alexander Business & Economics / Business Ethics thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJG Business ethics and social responsibility 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 this soaring inflation in high pay is the result of a market failure, leading to inefficient pay practices that are replicated across industries. Individual company’s renumeration committees face a prisoner’s dilemma, and so recommend over-the-odds payments in the vain hope of obtaining superior talent. For institutional investors, these developments have created a collective action problem, with many historically unwilling or unable to intervene to curtail excessive corporate pay.But are executives themselves really the greedy, self-interested, fat cats of popular culture? Based on a thought experiment and survey of beliefs of over a thousand senior executives from around the world, Pepper and his colleagues found that business executives in fact tend not to justify their pay levels as if they were ethical egoists entitled to act entirely in their own self-interest. Instead, they expressed support for a range of ethical beliefs on inequality and distributive justice. They can be categorised as either welfare liberals, relational egalitarians, meritocrats or free marketeers. 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 the market failure in executive pay 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. 2026-02-12T10:38:14Z 2026-02-12T10:38:14Z 2022 book 9781909890954 https://directory.doabooks.org/handle/20.500.12854/171554 eng LSE Press 74dc3a2f-c8d1-428d-b77c-3bec749428da 9781909890954 198 open access
spellingShingle Business & Economics / Business Ethics
thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJG Business ethics and social responsibility
Pepper, Alexander
If You’re So Ethical, Why Are You So Highly Paid?
title If You’re So Ethical, Why Are You So Highly Paid?
title_full If You’re So Ethical, Why Are You So Highly Paid?
title_fullStr If You’re So Ethical, Why Are You So Highly Paid?
title_full_unstemmed If You’re So Ethical, Why Are You So Highly Paid?
title_short If You’re So Ethical, Why Are You So Highly Paid?
title_sort if you re so ethical why are you so highly paid
topic Business & Economics / Business Ethics
thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJG Business ethics and social responsibility
topic_facet Business & Economics / Business Ethics
thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJG Business ethics and social responsibility
url https://directory.doabooks.org/handle/20.500.12854/171554
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