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.

Question

Quizplus · Accepted Answer

According to Thomas Piketty, CEOs should not earn much more than 10-20 times the earnings of the company's average salary. He believes that the huge pay gap between CEOs and average workers can be damaging for society and the economy as a whole. By limiting executive compensation, Piketty believes that we can reduce income inequality and promote a more equitable distribution of wealth.

According to Noted Economist Thomas Piketty