The issue of __________ is an important ethical consideration with respect to agency theory.

Question

Quizplus · Accepted Answer

The pay of chief executive officers (CEOs) is the key issue in agency theory. This is because CEOs have significant decision-making power and can use their position to benefit themselves at the expense of shareholders. The ethical consideration is whether the CEO's pay aligns with the interests of the shareholders and whether it is justifiable given the company's performance.

The Issue of __________ Is an Important Ethical Consideration with Respect