According to management consultant Peter Drucker:
A)the annual pay for top executives should include a small guaranteed salary but should include a very large bonus in years where the firm earns higher profits than competitors.
B)CEOs should not earn much more than 20 times the earnings of their companies' lowest paid employees.
C)top executives are entitled to any level of pay they can negotiate with their board of directors.
D)all bonuses paid to CEOs should be tied to long-run increases in market share.

Question

Quizplus · Accepted Answer

According to Peter Drucker, CEOs should not earn much more than 20 times the earnings of their companies' lowest paid employees. This is based on the principle of fairness and equality within an organization, and is intended to prevent excessive executive compensation at the expense of lower-level employees. Drucker also believed that top executives have a responsibility to consider the long-term welfare of their firms and that compensation should be linked to performance outcomes that benefit the company as a whole rather than just individual executives.

According to Management Consultant Peter Drucker