119
E ECUTIVE BAR AININ : CEOS NE OTIATIN THEIR PA
WITH EMPLO EES OR CORPORATE E ICIENC
By Nathan Witkin
I INTRODUCTION
Rising executive pay is a significant problem that points to a structural
flaw in American corporations. This article presents a solution to that flaw
through which Chief Executive Officers (CEOs) negotiate their pay in
company resources with lower-paid employees. Exploring this solution also
unearths an explanation for capitalism s apparent drive toward inequality and
examines the historical development of corporations and trade unions in the
United States.
The problem is that managers and corporate directors will raise pay at the
top so long as that pay-setting process does not consider the pay of average-
and low-wage workers. The solution is that CEOs and other top executives
negotiate their pay in company resources with employees in a process that
determines the pay and bonuses of both sides. Microeconomic theory indicates
that confronting the tradeoffs of raising executive compensation with other
potential corporate expenditures—by negotiating this compensation with
workers from different parts of the company—will make executive
compensation more efficient.1 Also, historical analysis indicates a pattern in
which executive compensation became aligned with public interest only during
the period in which workers had significant power to negotiate their wages and
Master of Public Policy Candidate at eorgetown University s McCourt School of Public
Policy J.D., The Ohio State Moritz College of Law. The Author is an independent researcher,
originator of a variety of social innovations (co-resolution, interest group mediation, consensus
arbitration, dependent advocacy, the popular tax audit, the hostile correction, a partnership
between citizen review boards and community policing, and a two-state/one-land solution to the
Israeli-Palestinian conflict), and author of several ambitious theories (the shift in sovereignty
from land to people under international treaties, the use of impact bonds as a solution to climate
change, and resistance to the accelerating expansion of the universe as the cause of gravitation).
He is also a former solo-practitioner in criminal and family law.
1 N. RE OR MAN IW, PRINCIPLES O MICROECONOMICS ( th ed. 2012) (describing the first
principle of microeconomics as centered on trade-offs). Many basic microeconomic models
involve trade-offs between potential allocations of resources to achieve efficiency. See DAVID
BESAN O RONALD R. BRAEUTI AM, MICROECONOMICS 20 07 (5th ed. 201 ).
120 KAN. J.L. & P B. POL’Y Vol. I :1
benefits. This is not to say that the solution to executive compensation is a
return to unions, which developed as a separate organizational structure with
their own flaws and inefficiencies. Rather, a corporation that synthesizes the
inputs of all its employees will be able to maximize efficiency and
productivity, producing profits for shareholders and growth for the overall
econ ...
January 23rd, 2012
What Is CEO Talent Worth?
By Professor, David F. Larcker and Brian Tayan, Researcher, Corporate Governance Research Program, Stanford Graduate School of Business
January 24, 2012
The topic of executive compensation elicits strong emotions among corporate stakeholders and practitioners. On the one hand are those who believe that chief executive officers in the United States are overpaid. On the other hand are those who believe that CEOs are simply paid the going fair-market rate.
Much less effort, however, is put into determining whether total compensation is commensurate with the value of services rendered.
We examine the issue and explain how such a calculation might be performed. We ask:
* How much value creation should be attributable to the efforts of the CEO?
* What percentage of this value should be fairly offered as compensation?
* Can the board actually perform this calculation? If not, how does it make rational decisions about pay levels?
Read the attached Closer Look and let us know what you think!
We find that IPO firms with generously compensated CEOs and large pay disparities between the CEO and other top executives have lower failure rates and longer time to survive in subsequent periods following the offering. Economically, firms with CEO pay (pay gaps) in the 75th percentile have a failure risk that is, on average, 11.56% (13.20%) lower than the failure risk of firms with CEO pay (pay gaps) in the 25th percentile. The relationship between CEO pay and IPO survival is strengthened among firms with lower agency conflicts, whereas the link between pay gap and IPO survival is pronounced among firms with stronger internal promotion incentives. The results are robust to alternative specifications and additional sensitivity tests.
We find that IPO firms with generously compensated CEOs and large pay disparities between the CEO and other top executives have lower failure rates and longer time to survive in subsequent periods following the offering. Economically, firms with CEO pay (pay gaps) in the 75th percentile have a failure risk that is, on average, 11.56% (13.20%) lower than the failure risk of firms with CEO pay (pay gaps) in the 25th percentile. The relationship between CEO pay and IPO survival is strengthened among firms with lower agency conflicts, whereas the link between pay gap and IPO survival is pronounced among firms with stronger internal promotion incentives. The results are robust to alternative specifications and additional sensitivity tests.
This case examines seven commonly accepted myths about corporate governance. How can we expect managerial behavior and firm performance to improve, if practitioners continue to rely on myths rather than facts to guide their decisions?
January 23rd, 2012
What Is CEO Talent Worth?
By Professor, David F. Larcker and Brian Tayan, Researcher, Corporate Governance Research Program, Stanford Graduate School of Business
January 24, 2012
The topic of executive compensation elicits strong emotions among corporate stakeholders and practitioners. On the one hand are those who believe that chief executive officers in the United States are overpaid. On the other hand are those who believe that CEOs are simply paid the going fair-market rate.
Much less effort, however, is put into determining whether total compensation is commensurate with the value of services rendered.
We examine the issue and explain how such a calculation might be performed. We ask:
* How much value creation should be attributable to the efforts of the CEO?
* What percentage of this value should be fairly offered as compensation?
* Can the board actually perform this calculation? If not, how does it make rational decisions about pay levels?
Read the attached Closer Look and let us know what you think!
We find that IPO firms with generously compensated CEOs and large pay disparities between the CEO and other top executives have lower failure rates and longer time to survive in subsequent periods following the offering. Economically, firms with CEO pay (pay gaps) in the 75th percentile have a failure risk that is, on average, 11.56% (13.20%) lower than the failure risk of firms with CEO pay (pay gaps) in the 25th percentile. The relationship between CEO pay and IPO survival is strengthened among firms with lower agency conflicts, whereas the link between pay gap and IPO survival is pronounced among firms with stronger internal promotion incentives. The results are robust to alternative specifications and additional sensitivity tests.
We find that IPO firms with generously compensated CEOs and large pay disparities between the CEO and other top executives have lower failure rates and longer time to survive in subsequent periods following the offering. Economically, firms with CEO pay (pay gaps) in the 75th percentile have a failure risk that is, on average, 11.56% (13.20%) lower than the failure risk of firms with CEO pay (pay gaps) in the 25th percentile. The relationship between CEO pay and IPO survival is strengthened among firms with lower agency conflicts, whereas the link between pay gap and IPO survival is pronounced among firms with stronger internal promotion incentives. The results are robust to alternative specifications and additional sensitivity tests.
This case examines seven commonly accepted myths about corporate governance. How can we expect managerial behavior and firm performance to improve, if practitioners continue to rely on myths rather than facts to guide their decisions?
Reply to 2 these 2 posts. Attempt to draw a parallel between these .docxpearlenehodge
Reply to 2 these 2 posts. Attempt to draw a parallel between these individual posts and my own post. Minimum of 2 external references for each response.Must be at least 250 words for each response.
Here is the textbook:
Martocchio, J. (2015).
Strategic Compensation: A Human Resource Management Approach.
Upper Saddle River: Pearson Education, Inc. (textbook)
#1 Robbie Davis
Performance Appraisal Process
Conducting Performance Appraisals as mentioned in our text, is a company’s way of telling employees what is expected of them and how well they are meeting these particular expectations. Mostly, businesses set general guidelines for employees to follow, and then the employee should be acknowledged for following these particular guidelines. Many companies decide to conduct to performance appraisals to gather information on the how the employee performance ranks against other employees. One way that Performance Appraisals could be used within a company is to provide monetary bonuses to employees that meet goals and expectations. HR Managers and other direct supervisors should be able to come up with numerous ways to measure the employee’s job performance. It has been clearly shown that employees perform better when they feel appreciated and acknowledged for a job well done. McCarthy (2000) mentions that “By focusing on specific job-related issues, there is less likelihood of the reviewer being swayed by irrelevant information such as personality or personal background. It can also prevent situations where the employee is unfairly rated on issues that are out of his or her control” (pg.23) When applying this particular knowledge of performance appraisals, management would then can be confident in the fact that the appraisals that are completed are done correctly and without any bias.
After now having more information from our reading on this particular human resource function, there are many different issues that can come along with performing employee appraisals. In relation to this week’s readings, there are always going to be challenges when it comes to making sure that employee performance appraisals are done correctly and without any type of bias. Washington (2008) mentions that “Hidden bias also can leave employers vulnerable to shifting demographics. Labor estimates show U.S. employers will face a shortage of skilled workers by 2010, and organizations that allow hidden biases to infiltrate personnel decisions won't succeed” (pg. 8). No company can perform these types of performance analysis without having some form of bias. HR managers and other managers alike should be using the scripture to help guide the companies process of performing these analysis. Titus 2:7-8 states “In everything set them an example by doing what is good. In your teaching show integrity, seriousness 8 and soundness of speech that cannot be condemned, so that those who oppose you may be ashamed because they have nothing bad to say about us” (ESV.
Discusses Major Compensation Issues regarding Executive Compensation. Provides Justification for Unreasonable Executive Compensation and Outlines measures for Executive Accountability
Executive Compensation and IncentivesMartin J. ConyonEx.docxcravennichole326
Executive Compensation and Incentives
Martin J. Conyon*
Executive Overview
The objective of a properly designed executive compensation package is to attract, retain, and motivate
CEOs and senior management. The standard economic approach for understanding executive pay is the
principal-agent model. This paper documents the changes in executive pay and incentives in U.S. firms
between 1993 and 2003. We consider reasons for these transformations, including agency theory, changes
in the managerial labor markets, shifts in firm strategy, and theories concerning managerial power. We show that
boards and compensation committees have become more independent over time. In addition, we demonstrate
that compensation committees containing affiliated directors do not set greater pay or fewer incentives.
Introduction
E
xecutive compensation is a complex and con-
troversial subject. For many years, academics,
policymakers, and the media have drawn atten-
tion to the high levels of pay awarded to U.S.
chief executive officers (CEOs), questioning
whether they are consistent with shareholder in-
terests.1 Some academics have further argued that
flaws in CEO pay arrangements and deviations
from shareholders’ interests are widespread and
considerable.2 For example, Lucian Bebchuk and
Jesse Fried provide a lucid account of the mana-
gerial power view and accompanying evidence.3
Marianne Bertrand and Sendhil Mullainathan too
provide an analysis of the ‘skimming view’ of CEO
pay.4 In contrast, John Core et al. present an
economic contracting approach to executive pay
and incentives, assessing whether CEOs receive
inefficient pay without performance.5 In this pa-
per, we show what has happened to CEO pay in
the United States. We do not claim to distinguish
between the contracting and managerial power
views of executive pay. Instead, we document the
pattern of executive pay and incentives in the
United States, investigating whether this pattern
is consistent with economic theory.
The Context: Who Sets Executive Pay?
B
efore examining the empirical evidence pre-
sented in this paper, it is important to consider
the pay-setting process and who sets executive
pay. The standard economic theory of executive
compensation is the principal-agent model.6 The
theory maintains that firms seek to design the most
efficient compensation packages possible in order to
attract, retain, and motivate CEOs, executives, and
managers.7 In the agency model, shareholders set
pay. In practice, however, the compensation com-
mittee of the board determines pay on behalf of
shareholders. A principal (shareholder) designs a
contract and makes an offer to an agent (CEO/
manager). Executive compensation ameliorates a
moral hazard problem (i.e., manager opportunism)
arising from low firm ownership. By using stock
options, restricted stock, and long-term contracts,
shareholders motivate the CEO to maximize firm
value. In other words, shareholders try to design
optimal compensation packages .
429
Chapter Thirteen
Union-Management
Cooperation
Many labor relations practices are adversarial—organizing, bargaining
over wages, disputing contract interpretations, and the like. But many
argue that both unions and managements can achieve improved outcomes
through cooperation. The catalyst for cooperation is often the financial
exigency of the employer and the specter of potentially large job losses.
This chapter explores variations in union-management cooperation and
their effects, including interest-based bargaining, community-based labor-
management committees, employee involvement programs, gainsharing,
and work and organization redesign. In reading this chapter, consider the
following questions:
1. How are cooperative problem-solving methods different from tradi-
tional bargaining?
2. Can a cooperation program violate labor laws?
3. What are some results of cooperative programs? Are they equally likely
to lead to successes for both unions and managements?
4. What types of cooperation programs are in current use by employers
and unions?
5. Are union-management cooperation programs sustainable in the long
run?
LABOR AND MANAGEMENT ROLES AND
THE CHANGING ENVIRONMENT
A succession of economic cycles has influenced outcomes for labor and
management. Labor supply and union power have been altered by sev-
eral waves of immigration. The Railway Labor Act, Norris-LaGuardia
Act, and Wagner Act strengthened labor ’s ability to organize. The Taft-
Hartley Act and Landrum-Griffin Act increased employer power. At
various points, new production technologies substantially reduced the
430 Labor Relations
need for lower-skilled union members. Today global competition affects
the survival of some employers and the jobs of a diverse set of workers.
During the past 40 years, industries that virtually monopolized domestic
markets, such as steel, motor vehicles, consumer electric and electronic
products, textiles, shoes, and software, now either need to be globally
competitive or may no longer exist in the United States. Foreign competi-
tors benefited from investment, technology transfer, and, particularly,
lower wages for unskilled workers that boosted their productivity or
lowered costs at a faster rate than was the case for domestic producers.
Some of this was due to unions’ abilities to increase wages and some to
employers’ failures to invest in technology. Both groups were respon-
sible for not attending to the way work and production were organized
as foreign producers implemented new and improved methods. 1 Some
companies failed and local unions were decimated, while others sur-
vived and prospered. In most cases, companies and unions in basic
industries that have survived have changed their approaches to each
other considerably.
Organizing and the Evolving Bargaining Relationship
U.S. employers have traditionally fought unionization. Even some
employers in hea ...
429
Chapter Thirteen
Union-Management
Cooperation
Many labor relations practices are adversarial—organizing, bargaining
over wages, disputing contract interpretations, and the like. But many
argue that both unions and managements can achieve improved outcomes
through cooperation. The catalyst for cooperation is often the financial
exigency of the employer and the specter of potentially large job losses.
This chapter explores variations in union-management cooperation and
their effects, including interest-based bargaining, community-based labor-
management committees, employee involvement programs, gainsharing,
and work and organization redesign. In reading this chapter, consider the
following questions:
1. How are cooperative problem-solving methods different from tradi-
tional bargaining?
2. Can a cooperation program violate labor laws?
3. What are some results of cooperative programs? Are they equally likely
to lead to successes for both unions and managements?
4. What types of cooperation programs are in current use by employers
and unions?
5. Are union-management cooperation programs sustainable in the long
run?
LABOR AND MANAGEMENT ROLES AND
THE CHANGING ENVIRONMENT
A succession of economic cycles has influenced outcomes for labor and
management. Labor supply and union power have been altered by sev-
eral waves of immigration. The Railway Labor Act, Norris-LaGuardia
Act, and Wagner Act strengthened labor ’s ability to organize. The Taft-
Hartley Act and Landrum-Griffin Act increased employer power. At
various points, new production technologies substantially reduced the
430 Labor Relations
need for lower-skilled union members. Today global competition affects
the survival of some employers and the jobs of a diverse set of workers.
During the past 40 years, industries that virtually monopolized domestic
markets, such as steel, motor vehicles, consumer electric and electronic
products, textiles, shoes, and software, now either need to be globally
competitive or may no longer exist in the United States. Foreign competi-
tors benefited from investment, technology transfer, and, particularly,
lower wages for unskilled workers that boosted their productivity or
lowered costs at a faster rate than was the case for domestic producers.
Some of this was due to unions’ abilities to increase wages and some to
employers’ failures to invest in technology. Both groups were respon-
sible for not attending to the way work and production were organized
as foreign producers implemented new and improved methods. 1 Some
companies failed and local unions were decimated, while others sur-
vived and prospered. In most cases, companies and unions in basic
industries that have survived have changed their approaches to each
other considerably.
Organizing and the Evolving Bargaining Relationship
U.S. employers have traditionally fought unionization. Even some
employers in hea.
The aim of this study was to determine the link between multiple directorships (MDs) and cash holdings. This study used the source from the firm’s annual report, as these studies were secondary data. Smart PLS 3.0 was used to verify the secondary data collected. This study shows that the number of people holding MDs inside the institution is growing, and this has a great effect on the organization’s interests. In addition, the findings support the first theory, which promotes chief executive officers to hold varied directorships because they contain desired elements from the companies. This study is unique because it is the first in the Sultanate of Oman to investigate financial enterprise at the Muscat Stock Exchange with the goal of achieving certainty. It evaluates whether having executives with one or numerous directorships is advantageous for the organization and its stakeholders
hapter 7 Wage and Salary IssuesStarbucks paid $18 million to sJeanmarieColbert3
hapter 7 Wage and Salary Issues
Starbucks paid $18 million to settle an overtime dispute with its employees. The U.S. Department of Labor in 2010 reported a record number of class action lawsuits in which workers won millions of dollars in overtime wages.
Source: AP Images.
Men work for two reasons. One is for wages, and one is for fear of losing their jobs.
Henry Ford (Founder and President, Ford Motor Company)
Chapter Outline
1. 7.1. Union Wage Concerns
2. 7.2. Management Wage Concerns
3. 7.3. Negotiated Wage Adjustments
4. 7.4. Concession Bargaining
5. 7.5. Wage Negotiation Issues
6. 7.6. Wage Surveys
7. 7.7. Costing Wage Proposals
Labor News Overtime Cases Won by Workers
Mark R. Thierman, a Reno, Nevada, attorney and Harvard Law School graduate was a “union buster” management labor attorney for 20 years. Not anymore! Today, he is called the “trailblazer” of what has become a hotbed of U.S. employment cases: the overtime provision of the Fair Labor Standards Act (FLSA). From 2001 to 2010, the number of cases filed in federal courts more than doubled. The U.S. Chamber of Commerce describes it as the “FLSA litigation explosion,” which has led to over $1 billion annually in settlements in recent years. The cases are usually filed against employers on behalf of a large group of employees and have included the following:
· Starbucks: $18 million settlement to store managers in California
· UPS: $87 million settlement to 23,000 drivers
· Walmart: $172 million jury award to California workers and $78.5 million jury award to Pennsylvania workers
· Sony: $8.5 million settlement to video-game employees
· Citigroup/Salomon Smith Barney: $98 million settlement to 20,000 stockbrokers
· IBM: $65 million settlement to 32,000 technical and support workers
· Unite Here: The labor union has been charged with failing to pay organizers overtime
· Abbott Laboratories: A federal judge ruled pharmaceutical reps are due overtime
The core issue of the cases is employers’ failure to pay workers time-and-a-half pay for hours worked over 40 per week as required by the federal law—overtime. About 86 percent of the U.S. workforce is entitled to overtime according to the U.S. Department of Labor, or 115 million workers. Only certain workers are exempt from the law: mostly supervisors, professionals, and executives.
Why the recent deluge of cases? In 2010 the U.S. Department of Labor cited the following as possible reasons for the increase in class action suits for overtime violations:
· Successful employees are receiving double damages plus attorney fees—making it worth their efforts.
· Some employers are unclear about new overtime guidelines.
· Workers are more informed of their rights and willing to file suits.
· Competitive economic forces are increasingly causing employers to seek ways of cutting costs.
Source: Adapted from Michael Orey, “Wage Wars: Workers from Truck Drivers to Stockbrokers Are Winning Huge Overtime Lawsuits,” Business Week (October 1, 2007), pp. ...
Alternate Work ArrangementsVarious alternative work arrangements exi.docxgalerussel59292
Alternate Work ArrangementsVarious alternative work arrangements exist for use in businesses and other types of organizations; included among the options are compressed work weeks, flexible work schedules, telecommuting, and job sharing. This case focuses on alternative work arrangements in general rather than on a particular one exclusively; however, telecommuting does receive additional attention.The case revolves around the potential advantages and disadvantages that are associated with alternative work arrangements, and the factors that are contributing to an increased use of various alternative work arrangements by employers. With respect to the various advantages and disadvantage that are identified in the case, the positives seem to outweigh the negatives. “Organizations that offer flexible working arrangements are, and will continue to be, employers of choice. ¼ Employees consistently rank flexible schedules high on their list of desired benefits; employers who are reluctant to offer these popular perks will find themselves falling short in the bidding wars for talent.” The case identifies three underlying factors that are driving the movement toward the increased utilization of alternative work arrangements in many different workplaces. These factors are: (a) the needs, desires, and expectations of workers for greater flexibility at work; (b) fuel costs and fuel consumption associated with commuting, and the related carbon footprint impact; and (c) the restrictive impact of the 2008-2009 economic recession on job opportunities.The case concludes by pointing out that many nations have experimented successfully with various flexible work programs and some countries have enacted legislation promoting alternative work arrangements. It then poses the question: “Will the United States government and American businesses be adequately prepared to meet future economic challenges, at least in part, by embracing the movement toward increasing use of alternative work arrangements?”Case Study - Alternative Work Arrangements: Possible
Solution
s for a Plethora of Problems?Alternative work arrangements, such as compressed work weeks, flexible work schedules, telecommuting, or job sharing, can have positive and negative consequences for employers and employees. In general, alternative work arrangements can generate beneficial outcomes, particularly for employers, such as “increased employee retention, loyalty and morale; higher productivity; improved recruiting of highly qualified workers; decreased employee tardiness and unscheduled absences; and maximum use of facilities and equipment.” On the employees’ side, telecommuting—one type of alternative work arrangement—has favorable effects on perceived autonomy, the resolution of work–family conflicts, job performance, job satisfaction, and the experience of stress. What is more, it does not harm perceived career prospects or the quality of workplace relationships. On the downside, however, are the ch.
Contents lists available at ScienceDirectJournal of Financia.docxdickonsondorris
Contents lists available at ScienceDirect
Journal of Financial Economics
Journal of Financial Economics 100 (2011) 130–153
0304-40
doi:10.1
$ We
seminar
We than
suggest
n Corr
E-m
[email protected]
journal homepage: www.elsevier.com/locate/jfec
Employee treatment and firm leverage: A test of the stakeholder theory
of capital structure$
Kee-Hong Bae a, Jun-Koo Kang b,n, Jin Wang c
a York University, Schulich School of Business, Canada
b Nanyang Technological University, Nanyang Business School, Singapore
c Wilfrid Laurier University, Canada
a r t i c l e i n f o
Article history:
Received 14 December 2009
Received in revised form
3 May 2010
Accepted 4 May 2010
Available online 28 October 2010
JEL classifications:
G32
G33
M51
Keywords:
Capital structure
Employee treatment
Stakeholder
KLD rating
Endogeneity
5X/$ - see front matter & 2010 Elsevier B.V. A
016/j.jfineco.2010.10.019
are grateful for comments from Melanie C
participants at the Wilfrid Laurier University a
k especially an anonymous referee for many d
ions. All errors are our own.
esponding author.
ail addresses: [email protected] (K.-H. B
ntu.edu.sg (J.-K. Kang), [email protected]
a b s t r a c t
We investigate the stakeholder theory of capital structure from the perspective of a firm’s
relations with its employees. We find that firms that treat their employees fairly
(as measured by high employeefriendly ratings) maintain low debt ratios. This result
is robust to a variety of model specifications and endogeneity issues. The negative relation
between leverage and a firm’s ability to treat employees fairly is also evident when we
measure its ability by whether it is included in the Fortune magazine list, ‘‘100 Best
Companies to Work For.’’ These results suggest that a firm’s incentive or ability to offer fair
employee treatment is an important determinant of its financing policy.
& 2010 Elsevier B.V. All rights reserved.
1. Introduction
A firm’s nonfinancial stakeholders, such as customers,
suppliers, and workers, can have a significant influence on
its capital structure decisions. Titman (1984) was the first
to point out that the stakeholders’ incentives to make
firm-specific investments affect a firm’s financing decisions.
Titman argues that because stakeholders face switching costs
if the firm is liquidated, their incentives to make firm-specific
ll rights reserved.
ao, Angie Low, and
nd York University.
etailed and helpful
ae),
nsu.ca (J. Wang).
investments depend on the firm’s financial condition.
Because stakeholders’ switching costs are positively related
to the uniqueness of a firm’s products or assets, to maximize
firm value ex ante, firms that have unique products or assets
have strong incentives to maintain lower leverage to reduce
stakeholders’ concerns about the firms’ potential liquidation
risk. Consistent with Titman (1984), several studies show that
firms that produce unique products and those that maintain
bilateral custome.
11Getting Started with PhoneGapWHAT’S IN THIS CHAPTERSantosConleyha
11
Getting Started with PhoneGap
WHAT’S IN THIS CHAPTER?
! History of PhoneGap
! Di! erences between HTML5 and PhoneGap
! Getting a development environment set up
! Implementing the Derby App
PhoneGap is an open source set of tools created by Nitobi
Solution
s (now part of Adobe)
that enables you to create mobile applications for multiple devices by utilizing the same code.
PhoneGap is a hybrid mobile application framework that allows the use of HTML, CSS,
and JavaScript to write applications that are based on the open standards of the web. These
applications also have access to the native functionality of the device. PhoneGap has been
downloaded more than 600,000 times, and more than 1,000 apps built with PhoneGap are
available in the respective app stores, which makes PhoneGap a viable solution for creating
cross-platform mobile apps.
HISTORY OF PHONEGAP
PhoneGap was started at the San Francisco iPhone Dev Camp in August 2008. iOS was shaping
up to become a popular mobile platform, but the learning curve for Objective-C was more work
than many developers wanted to take on. PhoneGap originally started as a headless browser
implementation for the iPhone. Because of the popularity of HTML/CSS/JavaScript, it was a
goal that this project use technologies with which many developers where already familiar.
Based on the growing popularity of the framework, in October 2008 Nitobi added support
for Android and BlackBerry. PhoneGap was awarded the People’s Choice award at the Web2.0
Expo Launch Pad in 2009, which was the start of developers recognizing PhoneGap as a
valuable mobile development tool. PhoneGap version 0.7.2 was released in April 2009, and
was the fi rst version for which the Android and iPhone APIs were equivalent.
c11.indd 309c11.indd 309 28/07/12 6:08 PM28/07/12 6:08 PM
310 " CHAPTER 11 GETTING STARTED WITH PHONEGAP
In September 2009 Apple approved the use of the PhoneGap platform to build apps for the iPhone
store. Apple required that all PhoneGap apps be built using at least version 0.8.0 of the PhoneGap
software. In July 2011, PhoneGap released version 1.0.0.
WHY USE PHONEGAP?
PhoneGap enables you to leverage your current HTML, CSS, and JavaScript skill sets to create a mobile
application. This can greatly speed up development time. When you develop for multiple platforms
using PhoneGap, you can reuse the majority of the code you have written for the mobile project, further
reducing development costs. It isn’t necessary to learn Java, C#, and Objective-C to create an applica-
tion with PhoneGap that can target iPhone, Android, BlackBerry, and Windows Phone 7.
If you fi nd native functionality missing from PhoneGap, you can extend the functionality of the
PhoneGap platform using native code. With the PhoneGap add-in structure, you can create an add-in
using the native language of the device and a JavaScript API that will call the native plug-in you
created. Cross-platfo ...
11Proposal Part One - Part 1 Influence of Internet on TourismSantosConleyha
11
Proposal Part One - Part 1: Influence of Internet on Tourism Industry
Research Proposal: Influence of Internet on Tourism Industry
Introduction
The tourism industry has been among the best-valued sectors within the nation to generate massive revenue for the government. Besides, the industry is considered among the earliest since it started several decades ago. For an extended period, the industry uses Integrated Marketing Communications to promote their various products and services to the entire world. The introduction of technology in the industry leads to improvements in the sectors. Most individuals without extensive information on the tourism industry can access the data in their comfort zones. It implies that IT and internet technology play a significant role in ensuring effective strategy due to its existence globally.
Most European countries have tried to promote and implement internet technology in ensuring satisfactory delivery of products and services (Kayumovich, 2020). Since it has a custom within the tourism and hotel industry to provide intangible products and services, including but not limited to services alongside comfort, the internet has been an effective method of delivering its messages to the targeted customers. Also, through internet technology, the industry has achieved more customers in the global market, including the European market. The promotion of branding within the European tourism industry has been effective due to the introduction and implementation of internet technology. Thus, the internet is believed to significantly influence the tourism industry in various sectors, including but limited to infrastructure, travel, alongside the marketing sector. Before introducing the internet alongside the IT, travelling of customers was dangerous and unpleasant since travellers had constraint understanding of locations they were visiting.
As a result, the existing vacationers of time had limited knowledge of the cultures and terrain alongside the climate change and patterns necessary to stimulate the travelling issues. Therefore, tourism sectors, including but not limited to tour companies, travel agencies and other like hotels, had developed strategies necessary to promote booking and reservation processes (David-Negre et al. 2018). However, several decades ago, popular sites were visited by tourists. It implies that the tourism sectors within the local or remote area faced challenges of securing sufficient clients as people were could not define the destination. Also, shortage of information on a particular region leads to reduced travelling by visitors. The research involved the utilization of relevant literature review on the subject matter to provide factual information. Therefore, the report offers adequate information on the influence of the internet on the tourism industry. This research would give me the stage to show my finding and view and also propose how the internet can be leveraged to an extend i ...
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Similar to 119E ECUTIVE BAR AININ CEOS NE OTIATIN THEIR PAWITH EM
Reply to 2 these 2 posts. Attempt to draw a parallel between these .docxpearlenehodge
Reply to 2 these 2 posts. Attempt to draw a parallel between these individual posts and my own post. Minimum of 2 external references for each response.Must be at least 250 words for each response.
Here is the textbook:
Martocchio, J. (2015).
Strategic Compensation: A Human Resource Management Approach.
Upper Saddle River: Pearson Education, Inc. (textbook)
#1 Robbie Davis
Performance Appraisal Process
Conducting Performance Appraisals as mentioned in our text, is a company’s way of telling employees what is expected of them and how well they are meeting these particular expectations. Mostly, businesses set general guidelines for employees to follow, and then the employee should be acknowledged for following these particular guidelines. Many companies decide to conduct to performance appraisals to gather information on the how the employee performance ranks against other employees. One way that Performance Appraisals could be used within a company is to provide monetary bonuses to employees that meet goals and expectations. HR Managers and other direct supervisors should be able to come up with numerous ways to measure the employee’s job performance. It has been clearly shown that employees perform better when they feel appreciated and acknowledged for a job well done. McCarthy (2000) mentions that “By focusing on specific job-related issues, there is less likelihood of the reviewer being swayed by irrelevant information such as personality or personal background. It can also prevent situations where the employee is unfairly rated on issues that are out of his or her control” (pg.23) When applying this particular knowledge of performance appraisals, management would then can be confident in the fact that the appraisals that are completed are done correctly and without any bias.
After now having more information from our reading on this particular human resource function, there are many different issues that can come along with performing employee appraisals. In relation to this week’s readings, there are always going to be challenges when it comes to making sure that employee performance appraisals are done correctly and without any type of bias. Washington (2008) mentions that “Hidden bias also can leave employers vulnerable to shifting demographics. Labor estimates show U.S. employers will face a shortage of skilled workers by 2010, and organizations that allow hidden biases to infiltrate personnel decisions won't succeed” (pg. 8). No company can perform these types of performance analysis without having some form of bias. HR managers and other managers alike should be using the scripture to help guide the companies process of performing these analysis. Titus 2:7-8 states “In everything set them an example by doing what is good. In your teaching show integrity, seriousness 8 and soundness of speech that cannot be condemned, so that those who oppose you may be ashamed because they have nothing bad to say about us” (ESV.
Discusses Major Compensation Issues regarding Executive Compensation. Provides Justification for Unreasonable Executive Compensation and Outlines measures for Executive Accountability
Executive Compensation and IncentivesMartin J. ConyonEx.docxcravennichole326
Executive Compensation and Incentives
Martin J. Conyon*
Executive Overview
The objective of a properly designed executive compensation package is to attract, retain, and motivate
CEOs and senior management. The standard economic approach for understanding executive pay is the
principal-agent model. This paper documents the changes in executive pay and incentives in U.S. firms
between 1993 and 2003. We consider reasons for these transformations, including agency theory, changes
in the managerial labor markets, shifts in firm strategy, and theories concerning managerial power. We show that
boards and compensation committees have become more independent over time. In addition, we demonstrate
that compensation committees containing affiliated directors do not set greater pay or fewer incentives.
Introduction
E
xecutive compensation is a complex and con-
troversial subject. For many years, academics,
policymakers, and the media have drawn atten-
tion to the high levels of pay awarded to U.S.
chief executive officers (CEOs), questioning
whether they are consistent with shareholder in-
terests.1 Some academics have further argued that
flaws in CEO pay arrangements and deviations
from shareholders’ interests are widespread and
considerable.2 For example, Lucian Bebchuk and
Jesse Fried provide a lucid account of the mana-
gerial power view and accompanying evidence.3
Marianne Bertrand and Sendhil Mullainathan too
provide an analysis of the ‘skimming view’ of CEO
pay.4 In contrast, John Core et al. present an
economic contracting approach to executive pay
and incentives, assessing whether CEOs receive
inefficient pay without performance.5 In this pa-
per, we show what has happened to CEO pay in
the United States. We do not claim to distinguish
between the contracting and managerial power
views of executive pay. Instead, we document the
pattern of executive pay and incentives in the
United States, investigating whether this pattern
is consistent with economic theory.
The Context: Who Sets Executive Pay?
B
efore examining the empirical evidence pre-
sented in this paper, it is important to consider
the pay-setting process and who sets executive
pay. The standard economic theory of executive
compensation is the principal-agent model.6 The
theory maintains that firms seek to design the most
efficient compensation packages possible in order to
attract, retain, and motivate CEOs, executives, and
managers.7 In the agency model, shareholders set
pay. In practice, however, the compensation com-
mittee of the board determines pay on behalf of
shareholders. A principal (shareholder) designs a
contract and makes an offer to an agent (CEO/
manager). Executive compensation ameliorates a
moral hazard problem (i.e., manager opportunism)
arising from low firm ownership. By using stock
options, restricted stock, and long-term contracts,
shareholders motivate the CEO to maximize firm
value. In other words, shareholders try to design
optimal compensation packages .
429
Chapter Thirteen
Union-Management
Cooperation
Many labor relations practices are adversarial—organizing, bargaining
over wages, disputing contract interpretations, and the like. But many
argue that both unions and managements can achieve improved outcomes
through cooperation. The catalyst for cooperation is often the financial
exigency of the employer and the specter of potentially large job losses.
This chapter explores variations in union-management cooperation and
their effects, including interest-based bargaining, community-based labor-
management committees, employee involvement programs, gainsharing,
and work and organization redesign. In reading this chapter, consider the
following questions:
1. How are cooperative problem-solving methods different from tradi-
tional bargaining?
2. Can a cooperation program violate labor laws?
3. What are some results of cooperative programs? Are they equally likely
to lead to successes for both unions and managements?
4. What types of cooperation programs are in current use by employers
and unions?
5. Are union-management cooperation programs sustainable in the long
run?
LABOR AND MANAGEMENT ROLES AND
THE CHANGING ENVIRONMENT
A succession of economic cycles has influenced outcomes for labor and
management. Labor supply and union power have been altered by sev-
eral waves of immigration. The Railway Labor Act, Norris-LaGuardia
Act, and Wagner Act strengthened labor ’s ability to organize. The Taft-
Hartley Act and Landrum-Griffin Act increased employer power. At
various points, new production technologies substantially reduced the
430 Labor Relations
need for lower-skilled union members. Today global competition affects
the survival of some employers and the jobs of a diverse set of workers.
During the past 40 years, industries that virtually monopolized domestic
markets, such as steel, motor vehicles, consumer electric and electronic
products, textiles, shoes, and software, now either need to be globally
competitive or may no longer exist in the United States. Foreign competi-
tors benefited from investment, technology transfer, and, particularly,
lower wages for unskilled workers that boosted their productivity or
lowered costs at a faster rate than was the case for domestic producers.
Some of this was due to unions’ abilities to increase wages and some to
employers’ failures to invest in technology. Both groups were respon-
sible for not attending to the way work and production were organized
as foreign producers implemented new and improved methods. 1 Some
companies failed and local unions were decimated, while others sur-
vived and prospered. In most cases, companies and unions in basic
industries that have survived have changed their approaches to each
other considerably.
Organizing and the Evolving Bargaining Relationship
U.S. employers have traditionally fought unionization. Even some
employers in hea ...
429
Chapter Thirteen
Union-Management
Cooperation
Many labor relations practices are adversarial—organizing, bargaining
over wages, disputing contract interpretations, and the like. But many
argue that both unions and managements can achieve improved outcomes
through cooperation. The catalyst for cooperation is often the financial
exigency of the employer and the specter of potentially large job losses.
This chapter explores variations in union-management cooperation and
their effects, including interest-based bargaining, community-based labor-
management committees, employee involvement programs, gainsharing,
and work and organization redesign. In reading this chapter, consider the
following questions:
1. How are cooperative problem-solving methods different from tradi-
tional bargaining?
2. Can a cooperation program violate labor laws?
3. What are some results of cooperative programs? Are they equally likely
to lead to successes for both unions and managements?
4. What types of cooperation programs are in current use by employers
and unions?
5. Are union-management cooperation programs sustainable in the long
run?
LABOR AND MANAGEMENT ROLES AND
THE CHANGING ENVIRONMENT
A succession of economic cycles has influenced outcomes for labor and
management. Labor supply and union power have been altered by sev-
eral waves of immigration. The Railway Labor Act, Norris-LaGuardia
Act, and Wagner Act strengthened labor ’s ability to organize. The Taft-
Hartley Act and Landrum-Griffin Act increased employer power. At
various points, new production technologies substantially reduced the
430 Labor Relations
need for lower-skilled union members. Today global competition affects
the survival of some employers and the jobs of a diverse set of workers.
During the past 40 years, industries that virtually monopolized domestic
markets, such as steel, motor vehicles, consumer electric and electronic
products, textiles, shoes, and software, now either need to be globally
competitive or may no longer exist in the United States. Foreign competi-
tors benefited from investment, technology transfer, and, particularly,
lower wages for unskilled workers that boosted their productivity or
lowered costs at a faster rate than was the case for domestic producers.
Some of this was due to unions’ abilities to increase wages and some to
employers’ failures to invest in technology. Both groups were respon-
sible for not attending to the way work and production were organized
as foreign producers implemented new and improved methods. 1 Some
companies failed and local unions were decimated, while others sur-
vived and prospered. In most cases, companies and unions in basic
industries that have survived have changed their approaches to each
other considerably.
Organizing and the Evolving Bargaining Relationship
U.S. employers have traditionally fought unionization. Even some
employers in hea.
The aim of this study was to determine the link between multiple directorships (MDs) and cash holdings. This study used the source from the firm’s annual report, as these studies were secondary data. Smart PLS 3.0 was used to verify the secondary data collected. This study shows that the number of people holding MDs inside the institution is growing, and this has a great effect on the organization’s interests. In addition, the findings support the first theory, which promotes chief executive officers to hold varied directorships because they contain desired elements from the companies. This study is unique because it is the first in the Sultanate of Oman to investigate financial enterprise at the Muscat Stock Exchange with the goal of achieving certainty. It evaluates whether having executives with one or numerous directorships is advantageous for the organization and its stakeholders
hapter 7 Wage and Salary IssuesStarbucks paid $18 million to sJeanmarieColbert3
hapter 7 Wage and Salary Issues
Starbucks paid $18 million to settle an overtime dispute with its employees. The U.S. Department of Labor in 2010 reported a record number of class action lawsuits in which workers won millions of dollars in overtime wages.
Source: AP Images.
Men work for two reasons. One is for wages, and one is for fear of losing their jobs.
Henry Ford (Founder and President, Ford Motor Company)
Chapter Outline
1. 7.1. Union Wage Concerns
2. 7.2. Management Wage Concerns
3. 7.3. Negotiated Wage Adjustments
4. 7.4. Concession Bargaining
5. 7.5. Wage Negotiation Issues
6. 7.6. Wage Surveys
7. 7.7. Costing Wage Proposals
Labor News Overtime Cases Won by Workers
Mark R. Thierman, a Reno, Nevada, attorney and Harvard Law School graduate was a “union buster” management labor attorney for 20 years. Not anymore! Today, he is called the “trailblazer” of what has become a hotbed of U.S. employment cases: the overtime provision of the Fair Labor Standards Act (FLSA). From 2001 to 2010, the number of cases filed in federal courts more than doubled. The U.S. Chamber of Commerce describes it as the “FLSA litigation explosion,” which has led to over $1 billion annually in settlements in recent years. The cases are usually filed against employers on behalf of a large group of employees and have included the following:
· Starbucks: $18 million settlement to store managers in California
· UPS: $87 million settlement to 23,000 drivers
· Walmart: $172 million jury award to California workers and $78.5 million jury award to Pennsylvania workers
· Sony: $8.5 million settlement to video-game employees
· Citigroup/Salomon Smith Barney: $98 million settlement to 20,000 stockbrokers
· IBM: $65 million settlement to 32,000 technical and support workers
· Unite Here: The labor union has been charged with failing to pay organizers overtime
· Abbott Laboratories: A federal judge ruled pharmaceutical reps are due overtime
The core issue of the cases is employers’ failure to pay workers time-and-a-half pay for hours worked over 40 per week as required by the federal law—overtime. About 86 percent of the U.S. workforce is entitled to overtime according to the U.S. Department of Labor, or 115 million workers. Only certain workers are exempt from the law: mostly supervisors, professionals, and executives.
Why the recent deluge of cases? In 2010 the U.S. Department of Labor cited the following as possible reasons for the increase in class action suits for overtime violations:
· Successful employees are receiving double damages plus attorney fees—making it worth their efforts.
· Some employers are unclear about new overtime guidelines.
· Workers are more informed of their rights and willing to file suits.
· Competitive economic forces are increasingly causing employers to seek ways of cutting costs.
Source: Adapted from Michael Orey, “Wage Wars: Workers from Truck Drivers to Stockbrokers Are Winning Huge Overtime Lawsuits,” Business Week (October 1, 2007), pp. ...
Alternate Work ArrangementsVarious alternative work arrangements exi.docxgalerussel59292
Alternate Work ArrangementsVarious alternative work arrangements exist for use in businesses and other types of organizations; included among the options are compressed work weeks, flexible work schedules, telecommuting, and job sharing. This case focuses on alternative work arrangements in general rather than on a particular one exclusively; however, telecommuting does receive additional attention.The case revolves around the potential advantages and disadvantages that are associated with alternative work arrangements, and the factors that are contributing to an increased use of various alternative work arrangements by employers. With respect to the various advantages and disadvantage that are identified in the case, the positives seem to outweigh the negatives. “Organizations that offer flexible working arrangements are, and will continue to be, employers of choice. ¼ Employees consistently rank flexible schedules high on their list of desired benefits; employers who are reluctant to offer these popular perks will find themselves falling short in the bidding wars for talent.” The case identifies three underlying factors that are driving the movement toward the increased utilization of alternative work arrangements in many different workplaces. These factors are: (a) the needs, desires, and expectations of workers for greater flexibility at work; (b) fuel costs and fuel consumption associated with commuting, and the related carbon footprint impact; and (c) the restrictive impact of the 2008-2009 economic recession on job opportunities.The case concludes by pointing out that many nations have experimented successfully with various flexible work programs and some countries have enacted legislation promoting alternative work arrangements. It then poses the question: “Will the United States government and American businesses be adequately prepared to meet future economic challenges, at least in part, by embracing the movement toward increasing use of alternative work arrangements?”Case Study - Alternative Work Arrangements: Possible
Solution
s for a Plethora of Problems?Alternative work arrangements, such as compressed work weeks, flexible work schedules, telecommuting, or job sharing, can have positive and negative consequences for employers and employees. In general, alternative work arrangements can generate beneficial outcomes, particularly for employers, such as “increased employee retention, loyalty and morale; higher productivity; improved recruiting of highly qualified workers; decreased employee tardiness and unscheduled absences; and maximum use of facilities and equipment.” On the employees’ side, telecommuting—one type of alternative work arrangement—has favorable effects on perceived autonomy, the resolution of work–family conflicts, job performance, job satisfaction, and the experience of stress. What is more, it does not harm perceived career prospects or the quality of workplace relationships. On the downside, however, are the ch.
Contents lists available at ScienceDirectJournal of Financia.docxdickonsondorris
Contents lists available at ScienceDirect
Journal of Financial Economics
Journal of Financial Economics 100 (2011) 130–153
0304-40
doi:10.1
$ We
seminar
We than
suggest
n Corr
E-m
[email protected]
journal homepage: www.elsevier.com/locate/jfec
Employee treatment and firm leverage: A test of the stakeholder theory
of capital structure$
Kee-Hong Bae a, Jun-Koo Kang b,n, Jin Wang c
a York University, Schulich School of Business, Canada
b Nanyang Technological University, Nanyang Business School, Singapore
c Wilfrid Laurier University, Canada
a r t i c l e i n f o
Article history:
Received 14 December 2009
Received in revised form
3 May 2010
Accepted 4 May 2010
Available online 28 October 2010
JEL classifications:
G32
G33
M51
Keywords:
Capital structure
Employee treatment
Stakeholder
KLD rating
Endogeneity
5X/$ - see front matter & 2010 Elsevier B.V. A
016/j.jfineco.2010.10.019
are grateful for comments from Melanie C
participants at the Wilfrid Laurier University a
k especially an anonymous referee for many d
ions. All errors are our own.
esponding author.
ail addresses: [email protected] (K.-H. B
ntu.edu.sg (J.-K. Kang), [email protected]
a b s t r a c t
We investigate the stakeholder theory of capital structure from the perspective of a firm’s
relations with its employees. We find that firms that treat their employees fairly
(as measured by high employeefriendly ratings) maintain low debt ratios. This result
is robust to a variety of model specifications and endogeneity issues. The negative relation
between leverage and a firm’s ability to treat employees fairly is also evident when we
measure its ability by whether it is included in the Fortune magazine list, ‘‘100 Best
Companies to Work For.’’ These results suggest that a firm’s incentive or ability to offer fair
employee treatment is an important determinant of its financing policy.
& 2010 Elsevier B.V. All rights reserved.
1. Introduction
A firm’s nonfinancial stakeholders, such as customers,
suppliers, and workers, can have a significant influence on
its capital structure decisions. Titman (1984) was the first
to point out that the stakeholders’ incentives to make
firm-specific investments affect a firm’s financing decisions.
Titman argues that because stakeholders face switching costs
if the firm is liquidated, their incentives to make firm-specific
ll rights reserved.
ao, Angie Low, and
nd York University.
etailed and helpful
ae),
nsu.ca (J. Wang).
investments depend on the firm’s financial condition.
Because stakeholders’ switching costs are positively related
to the uniqueness of a firm’s products or assets, to maximize
firm value ex ante, firms that have unique products or assets
have strong incentives to maintain lower leverage to reduce
stakeholders’ concerns about the firms’ potential liquidation
risk. Consistent with Titman (1984), several studies show that
firms that produce unique products and those that maintain
bilateral custome.
Similar to 119E ECUTIVE BAR AININ CEOS NE OTIATIN THEIR PAWITH EM (20)
11Getting Started with PhoneGapWHAT’S IN THIS CHAPTERSantosConleyha
11
Getting Started with PhoneGap
WHAT’S IN THIS CHAPTER?
! History of PhoneGap
! Di! erences between HTML5 and PhoneGap
! Getting a development environment set up
! Implementing the Derby App
PhoneGap is an open source set of tools created by Nitobi
Solution
s (now part of Adobe)
that enables you to create mobile applications for multiple devices by utilizing the same code.
PhoneGap is a hybrid mobile application framework that allows the use of HTML, CSS,
and JavaScript to write applications that are based on the open standards of the web. These
applications also have access to the native functionality of the device. PhoneGap has been
downloaded more than 600,000 times, and more than 1,000 apps built with PhoneGap are
available in the respective app stores, which makes PhoneGap a viable solution for creating
cross-platform mobile apps.
HISTORY OF PHONEGAP
PhoneGap was started at the San Francisco iPhone Dev Camp in August 2008. iOS was shaping
up to become a popular mobile platform, but the learning curve for Objective-C was more work
than many developers wanted to take on. PhoneGap originally started as a headless browser
implementation for the iPhone. Because of the popularity of HTML/CSS/JavaScript, it was a
goal that this project use technologies with which many developers where already familiar.
Based on the growing popularity of the framework, in October 2008 Nitobi added support
for Android and BlackBerry. PhoneGap was awarded the People’s Choice award at the Web2.0
Expo Launch Pad in 2009, which was the start of developers recognizing PhoneGap as a
valuable mobile development tool. PhoneGap version 0.7.2 was released in April 2009, and
was the fi rst version for which the Android and iPhone APIs were equivalent.
c11.indd 309c11.indd 309 28/07/12 6:08 PM28/07/12 6:08 PM
310 " CHAPTER 11 GETTING STARTED WITH PHONEGAP
In September 2009 Apple approved the use of the PhoneGap platform to build apps for the iPhone
store. Apple required that all PhoneGap apps be built using at least version 0.8.0 of the PhoneGap
software. In July 2011, PhoneGap released version 1.0.0.
WHY USE PHONEGAP?
PhoneGap enables you to leverage your current HTML, CSS, and JavaScript skill sets to create a mobile
application. This can greatly speed up development time. When you develop for multiple platforms
using PhoneGap, you can reuse the majority of the code you have written for the mobile project, further
reducing development costs. It isn’t necessary to learn Java, C#, and Objective-C to create an applica-
tion with PhoneGap that can target iPhone, Android, BlackBerry, and Windows Phone 7.
If you fi nd native functionality missing from PhoneGap, you can extend the functionality of the
PhoneGap platform using native code. With the PhoneGap add-in structure, you can create an add-in
using the native language of the device and a JavaScript API that will call the native plug-in you
created. Cross-platfo ...
11Proposal Part One - Part 1 Influence of Internet on TourismSantosConleyha
11
Proposal Part One - Part 1: Influence of Internet on Tourism Industry
Research Proposal: Influence of Internet on Tourism Industry
Introduction
The tourism industry has been among the best-valued sectors within the nation to generate massive revenue for the government. Besides, the industry is considered among the earliest since it started several decades ago. For an extended period, the industry uses Integrated Marketing Communications to promote their various products and services to the entire world. The introduction of technology in the industry leads to improvements in the sectors. Most individuals without extensive information on the tourism industry can access the data in their comfort zones. It implies that IT and internet technology play a significant role in ensuring effective strategy due to its existence globally.
Most European countries have tried to promote and implement internet technology in ensuring satisfactory delivery of products and services (Kayumovich, 2020). Since it has a custom within the tourism and hotel industry to provide intangible products and services, including but not limited to services alongside comfort, the internet has been an effective method of delivering its messages to the targeted customers. Also, through internet technology, the industry has achieved more customers in the global market, including the European market. The promotion of branding within the European tourism industry has been effective due to the introduction and implementation of internet technology. Thus, the internet is believed to significantly influence the tourism industry in various sectors, including but limited to infrastructure, travel, alongside the marketing sector. Before introducing the internet alongside the IT, travelling of customers was dangerous and unpleasant since travellers had constraint understanding of locations they were visiting.
As a result, the existing vacationers of time had limited knowledge of the cultures and terrain alongside the climate change and patterns necessary to stimulate the travelling issues. Therefore, tourism sectors, including but not limited to tour companies, travel agencies and other like hotels, had developed strategies necessary to promote booking and reservation processes (David-Negre et al. 2018). However, several decades ago, popular sites were visited by tourists. It implies that the tourism sectors within the local or remote area faced challenges of securing sufficient clients as people were could not define the destination. Also, shortage of information on a particular region leads to reduced travelling by visitors. The research involved the utilization of relevant literature review on the subject matter to provide factual information. Therefore, the report offers adequate information on the influence of the internet on the tourism industry. This research would give me the stage to show my finding and view and also propose how the internet can be leveraged to an extend i ...
11Social Inclusion of Deaf with Hearing CongreSantosConleyha
11
Social Inclusion of Deaf with Hearing Congregants within a Ministerial Setting Comment by Stumme, Clifford James (College Applied Studies & Acad Succ): As you review this sample student paper, please keep in mind that there are some flaws in this paper (as with any piece of writing). However, it is one of the best INDS 400 research proposals received to date, so it is an excellent reference point.
Sample Student Comment by Stumme, Clifford James (College Applied Studies & Acad Succ) [2]: Also, remember that what you are looking at is an example of the overall research proposal, not just the literature review. If you are working on your literature review, refer to the portion marked “literature review” and remember that within that literature review portion, there is a unique introduction, body paragraphs, and conclusion. The first paragraph is the introduction for the proposal as a whole, which is different from the kind of introduction you should write for the literature review itself. Also remember that while this research proposal has an abstract, you do not need one for the literature review.
Liberty University
INDS 400: Knowledge Synthesis for Professional and Personal Development
January 3, 2020
Abstract Comment by Stumme, Clifford James (College Applied Studies & Acad Succ) [2]: Notice how the abstract gives a brief overview of the elements of the research proposal without arguing or getting ahead of itself by predicting results.
Culture can influence how people interact and the level of inclusion of different cultures in a particular setting.While numerous studies have been conducted examining deaf studies and deaf culture, there is a curious lack of research that has specifically considered the level of inclusion of deaf people in evangelical hearing churches. This research proposal includes an interdisciplinary including a literature review that examines a handful of studies on interactions among deaf and hearing populations to consider challenges of hearing and deaf integration. Examining these diverse perspectives, including Catholic ministry, disability ministry and deaf culture, provides a fresh interdisciplinary perspective to approach the challenges of deaf inclusion in ministerial settings. It was found through this literature review that a gap in scholarly research exists in this area. As further research would be necessary to address this gap, the goal of this research proposal is to conduct a qualitative study for further research by petitioning deaf perspective through online interviews utilizing the social media platform of Facebook. Although a low budget would be necessary, the implications of this research would provide a platform to open community conversation to address challenges and provide ideas on integration of deaf and hearing congregants in evangelical hearing churches. Examining deaf perspectives may provide additional information for fellowship, growth and exposure to the Gospel for deaf congr ...
11Mental Health Among College StudentsTomia WillinSantosConleyha
11
Mental Health Among College Students
Tomia Willingham
Sophia Learning
Eng 215
March 14, 2021
Introduction
Going to college can be demanding for many people. In addition to managing academic insistence, many students have to cope with their families' complex separation tasks. At the same time, some of them continue to deal with a lot of many family duties. Mental health experts and advocates contend that it is an epidemic that colleges need to investigate further. Depression, anxiety disorders are some of the significant mental health issues that affect college students. The effects of suicidal ideas on university students' academic achievement have not been explored, yet mental health conditions are associated with academic achievement (De Luca et al., 2016). A novel coronavirus has worsened the situation of mental health. Even before the onset of this virus, there was concern from mental health policymakers in America because of the rising mental health challenges. They claimed a need for additional aid for struggling university students and the capability for these institutions to provide it. Regrettably, many university students with mental health conditions do not seek and receive the necessary treatment. The primary reasons for not pursuing help include thinking that the challenge will get better with time, stigma from their peers and no time to seek the treatment because of a busy schedule (Corrigan et al. 2016). Without this treatment, college students experiencing medical conditions most of the time get lower grades, drop out of college, immerse themselves into substance abuse, or become unemployed. Because these mental health conditions are invisible, they can only be seen through academic performance or social behavior change. Should universities strike a balance between mental health conditions and academics? This review will conclude that the mental health condition of university students and scholars should be balanced. Comment by Dr. Helen Doss: You need to answer this question and present the answer as the thesis at the end of this paragraph. Comment by Dr. Helen Doss: This is not a review essay—it is an argumentative or persuasive essay. Comment by Dr. Helen Doss: What does this mean—should be balanced? By what? For what? And, by whom? Comment by Dr. Helen Doss: This paragraph is too long. See: https://www.umgc.edu/current-students/learning-resources/writing-center/writing-resources/parts-of-an-essay/paragraph-structure.cfm
Effects of not Balancing Mental Health and Academics
There are consequences of not balancing mental health and academics in higher learning institutions, mainly if they do not receive any treatment. For example, if depression goes untreated, it raises the chances of risky behavior like substance abuse. The condition affects how students sleep, eat, and it also affects how students think. Also, students cannot concentrate in class, and they cannot make rational decisions. By lack of concent ...
11From Introductions to ConclusionsDrafting an EssayIn this chapSantosConleyha
11From Introductions to ConclusionsDrafting an Essay
In this chapter, we describe strategies for crafting introductions that set up your argument. We then describe the characteristics of well-formulated paragraphs that will help you build your argument. Finally, we provide you with some strategies for writing conclusions that reinforce what is new about your argument, what is at stake, and what readers should do with the knowledge you convey
DRAFTING INTRODUCTIONS
The introduction is where you set up your argument. It’s where you identify a widely held assumption, challenge that assumption, and state your thesis. Writers use a number of strategies to set up their arguments. In this section we look at five of them:
· Moving from a general topic to a specific thesis (inverted-triangle introduction)
· Introducing the topic with a story (narrative introduction)
· Beginning with a question (interrogative introduction)
· Capturing readers’ attention with something unexpected (paradoxical introduction)
· Identifying a gap in knowledge (minding-the-gap introduction)
Remember that an introduction need not be limited to a single paragraph. It may take several paragraphs to effectively set up your argument.
Keep in mind that you have to make these strategies your own. That is, we can suggest models, but you must make them work for your own argument. You must imagine your readers and what will engage them. What tone do you want to take? Playful? Serious? Formal? Urgent? The attitude you want to convey will depend on your purpose, your argument, and the needs of your audience.◼ The Inverted-Triangle Introduction
An inverted-triangle introduction, like an upside-down triangle, is broad at the top and pointed at the base. It begins with a general statement of the topic and then narrows its focus, ending with the point of the paragraph (and the triangle), the writer’s thesis. We can see this strategy at work in the following introduction from a student’s essay. The student writer (1) begins with a broad description of the problem she will address, (2) then focuses on a set of widely held but troublesome assumptions, and (3) finally, presents her thesis in response to what she sees as a pervasive problem.
The paragraph reads, “In today’s world, many believe that education’s sole purpose is to communicate information for students to store and draw on as necessary. By storing this information, students hope to perform well on tests. Good test scores assure good grades. Good grades eventually lead to acceptances into good colleges, which ultimately guarantee good jobs. Many teachers and students, convinced that education exists as a tool to secure good jobs, rely on the banking system. In her essay “Teaching to Transgress,” bell hooks defines the banking system as an “approach to learning that is rooted in the notion that all students need to do is consume information fed to them by a professor and be able to memorize and store it” (185). Through the banking s ...
11Groupthink John SmithCampbellsville UnivSantosConleyha
1
1
Groupthink
John Smith
Campbellsville University
BA611 – Organizational Theory
Dr. Jane Corbett
January 17, 2021
Definition
Groupthink is a pattern of thought characterized by self-deception, forced manufacture of consent, and conformity to group values and ethics.
Summary
Valine (2018) discussed how powerful an effect groupthink can have on community and peers. It followed two case studies about JPMorgan Chase and Wells Fargo, which explains how many sources and credentials the author has used. The focus of the article is that circumstances have occurred inside these companies which were able to affect the entire economy as well. Groupthink is usually followed by irrational thinking and decision making which completely ignores alternatives and constantly goes for the primary decision. The large difference between group and groupthink is that the group consists of members of various backgrounds and experiences, while groupthink usually has members of similar ones. Further, there is no way for groupthink to recover from bad decisions mainly because all members have a similar understanding and point of the view towards a certain topic. The illusion of invulnerability is the main characteristic related to groupthink, where teammates ignore the danger, take extreme risks, and act highly optimistic.
Discussion
Groupthink is characterized by incorrect decisions that groups make mainly due to mental efficiency, reality testing, and moral judgment. Many conditions can cause groupthink to occur, and the most frequent ones are collective rationalization, belief in inherent morality, stereotyped views of out-groups, direct pressure on dissenters, and self-censorship.
The collective rationalization explains how different warnings are against the group thinking, so and where those opinions can create a misunderstanding. Belief in inherent morality points out that members ignore the ethical and moral consequences of decisions because they believe the correctness of their cause. The stereotyped views of out-groups are the characters to create a negative feeling about opposition outside the group environment. The direct pressure on dissenters is where team leaders discuss all members that have different opinions and philosophies than the group’s commitments and agreement. Lastly, the self-censorship is where teammates keep their thoughts and opinions without expressing them to others.
The case study about the London Whale explains how JPMC, one of the largest banks in the world, has lost 6.5 billion dollars due to bad and poor investment decisions. Everything occurred in April and May of 2012, where larger trading loss happened in Chase’s Investment Office throughout the London branch. The main transaction that affected Morgan Chase was credit default swaps (CDS) and it was shown that famous trader Bruno Iksil has gathered significant CDS position in the market at that time. Following this case, the internal control has risen o ...
11Sun Coast Remediation Research Objectives, Research QueSantosConleyha
11
Sun Coast Remediation: Research Objectives, Research Questions, and Hypotheses
4
Sun Coast Remediation
Unique R. Simpkins
Southern Columbia University
Course Name Here
Instructor Name
11-2-2021
Research Objectives, Research Questions, and Hypotheses
Based on the information amassed by the former health and safety director, the organization needs to pursue safety-related programs or initiatives to ensure employees' health. It is an appropriate approach to help the firm and the employees achieve goals and inhibit costs arising from injuries and illnesses while on duty. The completion of this task will provide managers with practicable insights on the approach to enhance safety and protect the firm from losses. This task accounts for the objectives, questions, and hypotheses of the research based on the provided statement of the problem.
RO1: Explore the correlation between the size of the Particulate Matter (PM) and the health of the employee.
RQ1: Is there a correlation between the size of the Particulate Matter (PM) and the health of the employee?
Ho1: There is no statistically significant evidence connecting the size of the Particulate Matter (PM) and the health of the employee.
Ha1: There is statistically significant evidence connecting the size of the Particulate Matter (PM) and the health of the employee.
RO2: Establish whether safety training is feasible in decreasing the lost-time hours.
RQ2: Is safety training feasible in decreasing the lost-time hours?
Ho2: There is no statistically significant evidence linking safety training and reduction in lost-time hours.
Ha2: There is statistically significant evidence linking safety training and reduction in lost-time hours.
RO3: Establish the effectiveness of predicting the decibels (dB) levels before the employee placement on determining the on-site risk.
RQ3: Is predicting the decibels (dB) levels before the employee placement on determining the on site risk effective?
Ho3: There is no statistically significant relationship between predicting the decibels (dB) levels before the employee placement and effective determination of the on-site risk.
Ha3: There is a statistically significant relationship between predicting the decibels (dB) levels before the employee placement and effective determination of the on-site risk.
RO4: Establish whether the revised training program is more practicable than the initially adopted initiative.
RQ4: Is the revised training program is more practicable than the previously adopted initiative?
Ho4: There is no statistically significant proof that the new training program is more feasible than the old program.
Ha4: There is statistically significant proof that the new training program is more feasible than the old program.
RO5: Determine the blood lead levels variation before and after exposure at the end of the remediation service.
RQ5: Do the blood lead levels before and after exposure at the end of the remediation service va ...
11Me Talk Pretty One Day # By David Sedaris From his bSantosConleyha
11
Me Talk Pretty One Day # By David Sedaris
From his book Me Talk Pretty One Day
At the age of forty-one, I am returning to school and have to think of myself as
what my French textbook calls Ba true debutant.D After paying my tuition, I was issued
a student ID, which allows me a discounted entry fee at movie theaters, puppet shows,
and Festyland, a far-flung amusement park that advertises with billboards picturing a
cartoon stegosaurus sitting in a canoe and eating what appears to be a ham sandwich.
IFve moved to Paris with hopes of learning the language. My school is an easy
ten-minute walk from my apartment, and on the first day of class I arrived early,
watching as the returning students greeted one another in the school lobby. Vacations
were recounted, and questions were raised concerning mutual friends with names like
Kang and Vlatnya. Regardless of their nationalities, everyone spoke what sounded to
me like excellent French. Some accents were better than others, but the students
exhibited an ease and confidence that I found intimidating. As an added discomfort,
they were all young, attractive, and well-dressed, causing me to feel not unlike Pa Kettle
trapped backstage after a fashion show.
The first day of class was nerve-racking because I knew IFd be expected to
perform. ThatFs the way they do it here # itFs everybody into the language pool, sink or
swim. The teacher marched in, deeply tanned from a recent vacation, and proceeded to
rattle off a series of administrative announcements. IFve spent quite a few summers in
Normandy, and I took a monthlong French class before leaving New York. IFm not
completely in the dark, yet I understood only half of what this woman was saying.
BIf you have not meimslsxp or lgpdmurct by this time, then you should not be in
this room. Has everyone apzkiubjxow? Everyone? Good, we shall begin.D She spread
out her lesson plan and sighed, saying, BAll right, then, who knows the alphabet?D
It was startling because (a) I hadnFt been asked that question in a while and (b) I
realized, while laughing, that I myself did not know the alphabet. TheyFre the same
letters, but in France theyFre pronounced differently. I know the shape of the alphabet
but had no idea what it actually sounded like.
BAhh.D The teacher went to the board and sketched the letter a. BDo we have
anyone in the room whose first name commences with an ahh?D
12
Two Polish Annas raised their hands, and the teachers instructed them to present
themselves by stating their names, nationalities, occupations, and a brief list of things
they liked and disliked in this world. The first Anna hailed from an industrial town
outside of Warsaw and had front teeth the size of tombstones. She worked as a
seamstress, enjoyed quiet times with friends, and hated the mosquito.
BOh, really,D the teacher said. BHow very interesting. I thought that everyone
loved the mosquito, but here, in front of all the world, you claim to ...
11Program analysis using different perspectivesSantosConleyha
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Program analysis using different perspectives
Student's Name
Institution
Course
Professor
Date
TABLE OF CONTENTS
Introduction……………………………………………………………………………………
Program Description/ Analysis of a Classical Liberal perspective…………………………
Program Description/ Analysis of a Radical perspective……………………………………
Program Description/ Analysis of a Conservative perspective……………………………..
Program Description/ Analysis of a Mordern Liberal perspective...………………………
Comparisons of four perspectives……………………………………………………………
Assessment and modifications of the perspectives………………………………………….
Conclusion……………………………………………………………………………………..
Introduction
Program analysis using different perspectives
In a political economy, policies and programs are essential tools that assist in understanding the ongoing struggle for equality and social justice. Although both have an underlying difference, they serve an almost similar purpose. Essentially, understanding the goal of any program or policy can be achieved by analyzing the contending perspectives (Harvey, 2020). This involves the intentional bringing of different perspectives in contrast. They help examine core economic problems or concepts from an orthodox perspective, and others criticize it from a heterodox perspective. The perspectives are essential since both the heterodox and orthodox positions can be examined and reach a consensus.
In the United States, there has been a rise in spending on prescription drugs, which has led to the introduction of a Build Better Program. One proposal is driving down the cost of prescription drugs by allowing Medicare to negotiate with drugmakers over price; starting in 2025-ten drugs (plus insulin) would be on the table the first year, growing to 20 by 2028 (The White House, 2021). Although members of Congress have accepted the proposal, there is a need to analyze it using the different contending perspectives. This paper explores the proposal using the Classical Liberal, The radical, the Conservative Perspective, and the Modern Liberal Perspective. Individuals have the right to pursue their happiness, and proponents of the different political economy perspectives should work hand-in-hand to promote human development within society.
Analysis by Perspective
The Classical Liberal
The political philosophy and ideology belonging to liberalism emphasize securing citizens' freedom by limiting government power. Today, the proponents hold various thoughts and Perspectives, one being Neo-Austrian economics (Clark, 2016). Essentially, the program's main aim is to reduce the overall cost of prescription drugs. From the Perspective of Neo-Austrians, humans are self-interested. They can act autonomously by utilizing their capacity to discover an efficient means of satisfying their desires and basic needs (Harvey, 2020). Also, the government is created by the people to protect their natural rights. At the same time, justice requires safeguarding the people's rights established by the c ...
11Factors that Affect the Teaching and Learning ProcessSantosConleyha
11
Factors that Affect the Teaching and Learning Process
Lua Shanks
Dr. Thompson
Valley State University
10-6-2021
Factors that Affect the Teaching and Learning Process
Contextual Factors
The efficacious teaching and learning processes are important in generating the desired academic outcomes for students. Such processes entail the transformation and transfer of knowledge from the educators to students. It requires a combination of different elements within the procedure, in which an instructor determines and establishes the learning goals and objectives, and designs teaching resources. Thereafter, teachers implement the learning strategy that they will utilize to impart intellectual content into students. However, learning is a cardinal factor that an educator musty take into account while overseeing the process of knowledge acquisition and retention. Many factors play an important role in shaping the process of teaching and learning. Contextual factors, for instance, are associated with a particular context and characteristic that is distinct to a specific group, community, society, and individual. Such factors may take the form of a child’s educational, community, as well as classroom settings.
Community, District, and School Factors
Armstrong School District is a major public learning institution that occupies a geographical area of approximately 437 square miles. Located in Pennsylvania, it forms one of the 500 public school districts in the state, and hosts teachers and students from diverse racial, ethnic, and ethnic backgrounds. As a consequence, the institution partners with families, community leaders, and teachers to improve students’’ capacity to acquire knowledge ahead of their graduation. The community refers to the urban or rural environment in which both the teachers and learners operate. These may include the teacher and students’ ethnic, racial political or social affiliations that affect learning or knowledge acquisition. Additionally, parents and community members play an integral role in ensuring the quality of education in schools. They for, example, collaborate with teachers and school administrators to develop the most effective ways of improving their students’ learning outcomes. Indeed, community involvement in schooling issues is potentially a rich area for innovation that has immense benefits that far exceeds its limitations. Considering that governments are constrained in offering quality education due to contextual issues such as remoteness, bureaucracy, corruption, and inefficient management, community factors are pivotal in bridging the gap between government initiatives and community needs. This helps to adjust the child’s familial obligations to family interests, thereby shifting towards ways of mobilizing a sense of community by strengthening trust and relationships between community members, parents, governments, as well as teachers and school leaders. Other important community factors that af ...
11
Criminal Justice: Racial discrimination
Student’s Name:
Institutional Affiliation:
Instructor’s Name:
Course Code:
Due Date:
Racial discrimination
Abstract
When there is justice in society, every person feels satisfied with the way legal actions are carried out in the community. Unfortunately, there are several instances of racial discrimination in the United States. Most of the racial discrimination in the United States ate directed towards black people. Although everyone is required to have equal treatment in the United States, achieving zero discrimination has always been difficult.
Understanding racial discrimination in the USA is vital as it makes it easy for one to identify ways to eliminate the criminal injustices resulting from racial discrimination. This will be essential since it will help to eliminate racial discrimination in the criminal justice system.
Introduction
When there is justice in society, every person feels satisfied with the way legal actions are carried out in society. The criminal justice community is when people are not discriminated against based on their skin color. Laws applicable are carried out uniformly such that every person is treated equally. When the laws are applied equally to every individual, it increases the trust in the criminal justice system. However, when there are biases in applying the laws, the criminal justice system becomes compromised. According to Kovera (2019), there are many disparities in the criminal justice system as black people are discriminated against by police officers based on their race. As a result, black people suffer more as compared to white people when they violate similar laws.
There is a lot of disparity in the criminal justice system of the United States. Many people suffer as a result of racial discrimination in the United States. People are discriminated against a lot in the administration of the policies. According to Donnel (2017), there is racial inequality in how criminal justice is carried out in policymaking. The criminal justice system discriminates against people based on their race. For example, police officers harass black people for minor mistakes which white people are left to walk freely even after making similar mistakes. Black people suffer because of the color of their skin.
Hypothesis/Problem Statement/Purpose Statement
Racial discrimination affects the outcomes of the criminal justice system adversely. How does racial discrimination affect the judicial criminal justice system? The study aims to identify ways in which criminal justice racial discrimination is practiced in the United States. It will also provide insights on the racial discrimination cases, which are helpful in the development of policies that can be helpful in the elimination of racial discrimination in society hence promoting equality among the citizens.
Literature Review and Definitions included in the research
According to Hinton, Henderson, and Reed (2018), there is mu ...
11Communication Plan for Manufacturing PlantStudSantosConleyha
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Communication Plan for Manufacturing Plant
Student’s Name
Institutional Affiliation
Instructor
Course
Date
Communication Plan of a Manufacturing Plant
Background
In manufacturing companies, organization employees are at the centre of an organization. Most of them are at the front lines with the ability to change strategy into results. At the culmination of the day, the plant employees have the responsibility of ensuring that the operations are conducted smoothly, a product reaches consumers timely, and quality products are manufacture with the appropriate specifications. However, despite the primary role they play, manufacturing plants are disjointed (Adejimola, 2008). That disengagement is embodied with a hefty price which is paying a negative role in the performance of manufacturing plants just as they are being challenged to increase their efficiency and effectiveness to the company compared to previous years. To realize rapid growth around the globe, the manufacturing industry is attempting to standardize operations and continuously leverage operations. Such kind of effort needs a company to possess highly invested employees (Obiekwe, O& Eke, 2019). For this reason, natural communication naturally is primary on the path to more highly engaged and motivated employees. However, it can sometimes be challenging to plant employees due to natural challenges that accompany workplace. Some may not frequently be on Smartphone’s or emails, or they may be having various shifts to manage, and the environment may be less conducive, which makes it challenging for them to have one-on-one conversations.
Policies for Oral, Written, and Non-Verbal Communications
Interpersonal communication in a manufacturing plant is the way employees or people communication with others. It may involve a group of p-people, another person or the members of the public. In some instances, it may encompass non-verbal, written or non-verbal communication. In the manufacturing industry, when an individual is communicating with others, they need to consider the person they are talking to, the type of information they want to deliver and the most appropriate and relevant form of communication change. In some instances, such issues may be determined by the information an individual wants to communication (Obiekwe, O& Eke, 2019). At all times, it is required that the staff members remain polite, respectful to both the clients and one another. At no time should they sear, raise their voice, speak in a way belittling another.
Cultural awareness is also another essential element when communicating in a cultural plant. All individuals working in the plant need to recognize that individuals emerge from varying backgrounds and cultures, and they also accompany various attitudes, different values and beliefs (Obiekwe, O& Eke, 2019). All staffs in the plant need to exercise non-judgmental communication remain respectful and are tolerant of the differences prevalence ...
11CapitalKarl MarxPART I. COMMODITIES AND MONEYCHAPTER I. SantosConleyha
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Capital
Karl Marx
PART I. COMMODITIES AND MONEY
CHAPTER I. COMMODITIES
Section 1. The two factors of a commodity: use-value and value (the substance of value and the magnitude of value)
The wealth of those societies in which the capitalist mode of production prevails, presents itself as “an immense accumulation of commodities,”1 its unit being a single commodity. Our investigation must therefore begin with the analysis of a commodity.
A commodity is, in the first place, an object outside us, a thing that by its properties satisfies human wants of some sort or another. The nature of such wants, whether, for instance, they spring from the stomach or from fancy, makes no difference.2 Neither are we here concerned to know how the object satisfies these wants, whether directly as means of subsistence, or indirectly as means of production.
Every useful thing, as iron, paper, &c., may be looked at from the two points of view of quality and quantity. It is an assemblage of many properties, and may therefore be of use in various ways. To discover the various uses of things is the work of history.3 So also is the establishment of socially-recognised standards of measure for the quantities of these useful objects. The diversity of these measures has its origin partly in the diverse nature of the objects to be measured, partly in convention.
The utility of a thing makes it a use-value.4 But this utility is not a thing of air. Being limited by the physical properties of the commodity, it has no existence apart from that commodity. A commodity, such as iron, corn, or a diamond, is therefore, so far as it is a material thing, a use-value, something useful. This property of a commodity is independent of the amount of labour required to appropriate its useful qualities. When treating of use-value, we always assume to be dealing with definite quantities, such as dozens of watches, yards of linen, or tons of iron. The use-values of commodities furnish the material for a special study, that of the commercial knowledge of commodities.5 Use-values become a reality only by use or consumption: they also constitute the substance of all wealth, whatever may be the social form of that wealth. In the form of society we are about to consider, they are, in addition, the material depositories of exchange-value.
Exchange-value, at first sight, presents itself as a quantitative relation, as the proportion in which values in use of one sort are exchanged for those of another sort,6 a relation constantly changing with time and place. Hence exchange-value appears to be something accidental and purely relative, and consequently an intrinsic value, i.e., an exchange-value that is inseparably connected with, inherent in commodities, seems a contradiction in terms.7 Let us consider the matter a little more closely.
A given commodity, e.g., a quarter of wheat is exchanged for x blacking, y silk, or z gold, &c.—in short, for other commodities in the most different proportions. Ins ...
1
1
Criminal Justice System
Shambri Chillis
June 11, 2022
Criminal justice system
The criminal justice system is essential to identify and prevent crimes in the community. Various functions of the criminale system now adhere to the development of technology. Modern technology helps the criminal justice system in different ways. It has made the job easier and has assisted in the prevention of crimes.
Role of criminal justice practitioners in the technology development
The Ccriminal justice practitioners are responsible for identifying and analyzing different crimes in the community. They are responsible for developing and implementing the technology in the criminal justice system because they can use it for different purposes. They can introduce the new trends in the criminal justice system like the officers can collect and gather the data through the technology. Human error can be reduced through it. The dataset can be maintained, and it is also essential for criminal justice practitioners to develop the technology to locate the criminals and track their local places through GPS. The technology cannot be developed untill the criminal officers implement it in the routine. The criminal system now has to use robots and cameras that help them get information about the criminals. The practitioners can also implement the technology by guiding the juniors to use it. The training is needed to make them understand the use of advanced technologies and to ensure that they use them in the right direction. The high-performance computer and internet systems are also essential for developing the technology, and it has been seen that the future will be bright regarding implementing technology (John S. Hollywood, 2018).
Controversial issues criminal justice policymakers face when considering an expansion in the use of DNA in criminal justice
Tthere are various controversial issues that criminal justice policymakers must consider while using DNA in the criminal justice system. The first thing that is criticized during the use of DNA is the fundamental human error, and iIt has been observed that there can be errors in the investigation, and people have to suffer. The issue in technology is also referred to as the error in using DNA because it might be possible that the results do not come correct at the first attempt. It involves several people who are not linked to the crimes but have to go for the fingerprinting tests by courts. However, DNA technology in criminal justice is highly advanced and has multiple benefits compared to disadvantages, but it has always faced significant controversy in the criminal justice system. The criminal justice system has to make sure that if DNA technology is being used, it must be error-free. The controversy has two opinions. There are two schools of thought regarding the use of DNA. One of the classes of experts thinks that DNA can be used to catch the different criminals. It is helpful in the family c ...
11American Government and Politics in a Racially DividSantosConleyha
1
1American Government
and Politics in a Racially
Divided World
chap ter
In 2016, Gov. Jack Markell signed a long-awaited resolution officially apologizing for the state’s role
in slavery. The apology for slavery illustrates the long and sometimes painful history of the United
States’ struggle with race, from the time of Thomas Jefferson, a slave owner, to President Barack
Obama, the first Black president of the United States.
01-McClain-Chap01.indd 1 11/24/16 8:34 PM
08/20/2017 - RS0000000000000000000000562545 (Anthony Ratcliff) - American
Government in Black and White
2 CHAPTER 1: AmericAn Government And Politics in A rAciAlly divided World
intro
D
ecember 6, 2015, marked the 150th anniversary of the abolish-
ment of slavery, when the U.S. Congress ratified the Thirteenth
Amendment to the Constitution. There were numerous events
recognizing the end of slavery, including an official White House event
presided over by President Obama. On February 11, 2016, Delaware
joined eight other states to formally apologize for slavery when Gover-
nor Jack Markell (D) signed the state’s joint resolution. Delaware’s reso-
lution acknowledged its participation in 226 years of
slavery first of both Native Americans and Africans in
the mid-1600s; by the close of the 1700s its entire
slave population was of African descent. The resolu-
tion also included acknowledgments that Delaware
criminalized humanitarian attempts to assist slaves
and that in later times Delaware passed and enforced
Jim Crow laws to deny the rights of African American
citizens for much of the twentieth century.1
On July 29, 2008, the U.S. House of Representa-
tives passed a nonbinding resolution, introduced and
championed by Representative Steven Cohen (D-TN),
which offered a formal apology for the government’s
participation in African American slavery and the
establishment of Jim Crow laws. The resolution said, in part, “African
Americans continue to suffer from the consequences of slavery and Jim
Crow—long after both systems were formally abolished—through
enormous damage and loss, both tangible and intangible, including the
loss of human dignity and liberty, the frustration of careers and profes-
sional lives, and the long-term loss of income and opportunity.”2
On June 18, 2009, the U.S. Senate unanimously passed a similar reso-
lution apologizing to African Americans for slavery and Jim Crow. The
Senate resolution said explicitly that the apology could not be used in
support of reparations (or compensation for past wrongs).3
The story of apologies for slavery is a complex one that highlights some of the
underlying dilemmas that face the U.S. political system—how to reconcile its stated
principles of how individuals should be treated with how the government actually
treats and has treated individuals. The apologies are intended to acknowledge the
nation’s complicity in a destructive and immoral institution, at ...
11Cancer is the uncontrollable growth of abnormal cellsSantosConleyha
1
1
Cancer is the uncontrollable growth of abnormal cells in the human body. It is defined by a malfunction in cellular mechanisms that control cell growth. Cells evade checkpoint controls and begin growing uncontrollably which resulting in an increase in abnormal cells, cancer cells. These cancer cells form a mass tissue known as a tumor. In the United States of America, cancer has been determined to be among the leading causes of mortality rates after cardiovascular conditions, where one in every four deaths is caused by cancer. The most common types of cancer include prostate cancer, lung cancer, and breast cancer. Risk factors for cancer include excess smoking, radiation exposure, genetics, and environmental pollution. Colon cancer, or colorectal cancer, affects the distal third of the large intestine, the colon, as well as the rectum, chamber in which feces is stored for elimination. Colorectal cancer is the third leading cause of death in cancer-related issues in the United States in both males and females (Beadnell et al., 2018). This essay explores the physiology and pathophysiology of colon cancer.
Polyps are tissue growths that generally look like small, flat bumps and are generally less than half an inch wide. They are generally non-cancerous growths that can develop with age on the inner wall of the colon or rectum. There are several types of polyps, such as hyperplastic. They are common and have a low risk of turning cancerous. Hyperplastic polyps found in the colon will be removed and biopsied. Pseudo polyps also referred to as inflammatory polyps, usually occur in people suffering from inflammatory bowel disease and are unlike other polyps. This type of polyp occurs due to chronic inflammation as seen in Crohn's disease and ulcerative colitis. However, a polyp cells which can turn out to be malignant. Villous adenoma or tubulovillous adenoma polyps carry a high risk of turning cancerous. They are sessile and develop flat on the tissue lining the organs. They might blend within the organ, making polyps not easily identifiable and difficult to locate for treatment. Adenomatous or tubular adenoma polyps have a high chance of being cancerous. When a polyp is found, it must be biopsied, and then will regular screenings and polyp removal will follow.
An adenocarcinoma is a cancer formed in a gland that lines an organ. This cancer impacts the epithelial cells, which are spread throughout the human body. Adenocarcinomas of the colon and rectum make up ninety-five percent of all colon cancers (Chang, 2020). Colon adenocarcinomas usually begin in the mucous lining the spread to different layers. Two subtypes of adenocarcinomas are mucinous adenocarcinoma and signet ring cells. Mucinous adenocarcinomas contain about sixty percent mucus which can cause cancer cells to spread faster and become more hostile than typical adenocarcinomas. Signet ring cell adenocarcinoma is responsible for less than one percent of all colon cancer. It is g ...
11SENSE MAKING Runze DuChee PiongBUS 700 LSantosConleyha
1
1
SENSE MAKING
Runze Du
Chee Piong
BUS 700 Leadership and Creative
Solution
s Implementation
Feb 14th 2021
SENSE MAKING
Sensemaking refers to an action or a process of making sense where meaning is given to something. Sensemaking is a process through which individuals give meaning to their collective experiences. Sensemaking is also a process of structuring the unknown by inserting stimuli into some framework kinds to enable individuals to understand or comprehend, attribute, to extrapolate and predict the meaning of something. Sensemaking is an activity that allows people to turn the ongoing complexity in the entire world into a situation that can be understood. Sensemaking Therefore, Sensemaking requires articulating the unknown because, in many cases, trying to put meaning to something strange is the only means by which one can understand it. For instance, the occurrence or the origin of COVID-19 in the entire world has been a phenomenon that has disturbed the heads of many trying to understand what it is, where it came from, who caused it, how it can be prevented and how it can be cured. In attempting to understand COVID 19, people came up with the explanations of what it is, what caused it, and that is where the scientists realized that this is a disease that is caused by a virus known as Coronavirus, since the condition merged in the year 2019, the virus was given the name coronavirus 19, and the disease it caused known as COVID 19. This is how sensemaking enables individuals to give meaning to something that can be understood easily by individuals.
The organization that I am familiar with that has experienced a current change in its operations is Starbucks. Starbucks is an American company that is known for its production and sell of coffee products. It was started in 1971 as a coffee selling company where it was majorly involved in roasting, marketing and selling coffee globally. It has more than 300 stores all over the world selling coffee. This organization has sold coffee within its stores since its initiation. However, because of the corona's onset, the management of this organization decided to change its operation to accommodate the changes in the environment depending on the restrictions imposed on businesses by the ministries of health all over the world. Starbucks company reacted to the industry changes brought about by COVID 19, where businesses were required to close their doors to enhance the measures of curbing the spread of coronavirus disease. Thus, the company embraced technology where it introduced Starbucks-pick up only stores that replaced the over 300 stores globally. The new stores required that no one could sit in as they take their coffee. Instead, everyone would be allowed only to take their orders from the store and to avoid congesting people in one place. Starbucks introduced Starbucks pick-up stores that use technology to supply coffee to customers. The business submitted a mobile app ...
11CALIFORNIA MANAGEMENT REVIEW VOL. 51, NO. 4 SUMMER 2009 CMR.BERKELEY.EDU
The Emergence and
Evolution of the
Multidimensional
Organization
J. Strikwerda
J.W. Stoelhorst
“In terms of its impact, not just on economic activity, but also on human life as a
whole, the multidivisional organizational design must rank as one of the major
innovations of the last century.”—John Roberts1
T
he multidivisional, multi-unit, or M-form, is widely acknowledged
as the most successful organization form of the twentieth century.2
Firms that employ the M-form organize their activities in separate
business units and delegate control over the resources needed to
create economic value to the managers of these units. This organization form is
widespread, is central to the “theory in use” of managers, and serves as the basis
of most accounting systems. However, the organization of productive activities
in many contemporary firms violates the principle that is central to the M-form:
that business units are self-contained. The quest for synergies that has been high
on the corporate agenda since the late 1980s has resulted in the widespread
adoption of corporate account management, shared service centers, and matrix
organizations. As a result, most business units now depend at least in part on
resources that are controlled by other units. This raises fundamental questions
about the status of the M-form in contemporary firms.
Questioning the status of the M-form is not merely a theoretical fancy,
but is high on the agenda of managers as well. In this article, we report on
research that was commissioned by the Foundation for Management Stud-
ies, a Dutch organization of management executives. These practical men and
women shared a fundamental uneasiness about structuring their organizations.
On the one hand, many of them experienced problems with the M-form: high
employee costs, internal battles over resources, lack of standardization, lack of
cooperation, and loss of market opportunities. On the other hand, they did not
The Emergence and Evolution of the Multidimensional Organization
UNIVERSITY OF CALIFORNIA, BERKELEY VOL. 51, NO. 4 SUMMER 2009 CMR.BERKELEY.EDU12
see any viable alternatives to the multi-unit organization form. The need to
exploit synergies across business units was widespread, but it was unclear which
organizational designs are most appropriate to achieve this. This led to a research
project to explore the ways in which leading Dutch organizations, including
subsidiaries of foreign multinationals, have adapted the M-form to better exploit
synergies across business units.
As we expected, the results of the study vividly illustrate the fundamen-
tal tension between the need for contemporary firms to exploit synergies and
their need for clear accountability. However, an additional and unexpected
finding was that a number of firms in the study have evolved an organiza-
tional form that signals a new way of res ...
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Creswell, J. W., & Creswell, J. D. (2018). Research design: Qualitative, quantitative, and mixed methods approaches (5th ed.). SAGE.
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The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
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Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Thesis Statement for students diagnonsed withADHD.ppt
119E ECUTIVE BAR AININ CEOS NE OTIATIN THEIR PAWITH EM
1. 119
E ECUTIVE BAR AININ : CEOS NE OTIATIN THEIR PA
WITH EMPLO EES OR CORPORATE E ICIENC
By Nathan Witkin
I INTRODUCTION
Rising executive pay is a significant problem that points to a
structural
flaw in American corporations. This article presents a solution
to that flaw
through which Chief Executive Officers (CEOs) negotiate their
pay in
company resources with lower-paid employees. Exploring this
solution also
unearths an explanation for capitalism s apparent drive toward
inequality and
examines the historical development of corporations and trade
unions in the
United States.
The problem is that managers and corporate directors will raise
pay at the
top so long as that pay-setting process does not consider the pay
of average-
and low-wage workers. The solution is that CEOs and other top
executives
negotiate their pay in company resources with employees in a
process that
determines the pay and bonuses of both sides. Microeconomic
2. theory indicates
that confronting the tradeoffs of raising executive compensation
with other
potential corporate expenditures —by negotiating this
compensation with
workers from different parts of the company—will make
executive
compensation more efficient.1 Also, historical analysis
indicates a pattern in
which executive compensation became aligned with public
interest only during
the period in which workers had significant power to negotiate
their wages and
Master of Public Policy Candidate at eorgetown University s
McCourt School of Public
Policy J.D., The Ohio State Moritz College of Law. The Author
is an independent researcher,
originator of a variety of social innovations (co-resolution,
interest group mediation, consensus
arbitration, dependent advocacy, the popular tax audit, the
hostile correction, a partnership
between citizen review boards and community policing, and a
two-state/one-land solution to the
Israeli-Palestinian conflict), and author of several ambitious
theories (the shift in sovereignty
from land to people under international treaties, the use of
impact bonds as a solution to climate
change, and resistance to the accelerating expansion of the
universe as the cause of gravitation).
He is also a former solo-practitioner in criminal and family law.
1 N. RE OR MAN IW, PRINCIPLES O MICROECONOMICS (
th ed. 2012) (describing the first
principle of microeconomics as centered on trade-offs). Many
basic microeconomic models
involve trade-offs between potential allocations of resources to
3. achieve efficiency. See DAVID
BESAN O RONALD R. BRAEUTI AM, MICROECONOMICS
20 07 (5th ed. 201 ).
120 KAN. J.L. & P B. POL’Y Vol. I :1
benefits. This is not to say that the solution to executive
compensation is a
return to unions, which developed as a separate organizational
structure with
their own flaws and inefficiencies. Rather, a corporation that
synthesizes the
inputs of all its employees will be able to maximize efficiency
and
productivity, producing profits for shareholders and growth for
the overall
economy.
This article will proceed in several parts. Part II will explain the
core idea
of this proposal, which is that executive pay is systematically
excessive
because the current pay-setting process for CEOs does not
consider alternative
corporate expenditures. Because employees from various levels
and
departments would be informed and motivated advocates for
these alternative
corporate expenditures, CEOs should negotiate their pay (in
company
resources) with these employees to reach efficient compensation
decisions.
Part III will examine the problem of CEO pay that does not
confront the
4. tradeoffs of alternative expenditures. Unrestrained
compensation is not
necessary to motivate executives, is inefficient for the
corporation, leads to
negative externalities for society, slows economic growth, saps
employee
morale, and interferes with the motivation and prosocial
tendencies of
executives.2 Part IV will then present policy proposals for
CEOs negotiating
their pay with lower-paid workers and the proposed benefits of
these executive
bargaining processes. Though these particular proposals are
currently untested,
historical analysis of trends in U.S. executive compensation and
comparative
analysis of corporations in other countries indicate that regular
negotiations
with workers restrains executive compensation. Having
presented the effects of
escalating executive pay and a promising mechanism for
restraining it, Part V
then analyzes why current approaches to executive
compensation produce
wage inflation. Part VI concludes with a theory of how
capitalism s drive
toward efficiency would lead to inevitable inequality and
employee backlash
unless corporations take steps such as having CEOs negotiate
their pay with
lower-paid workers.
II THE CORE IDEA OF A NEGOTIATED EXECUTIVE
COMPENSATION
PROCESS
5. The core argument behind executive bargaining is this: if
corporations set
executive compensation in a separate process from the
budgeting of other
corporate expenditures, spending on executives will not
confront the tradeoffs
of alternative uses of those resources. In economies where
individual
2 These assertions summarize the arguments presented in the
subsections of Part III. See infra text
accompanying notes 9 12 .
Douglas C. Michael, The Corporate Officer’s ndependent Duty
as a Tonic for the Anemic Law
of E ecutive Compensation, 17 J. CORP. L. 785, 797 (1992) ( T
here is nothing approaching a
2019 WITKIN: EXECUTIVE BARGAINING 121
shareholders do not have the information or capacity to sit
across from CEOs
in considering these tradeoffs,4 employees are in the best
position to confront
executives with alternative expenditures.5
This executive bargaining process primarily seeks to achieve
economic
efficiency, which should subsequently lead to higher profits for
shareholders.6
However, there may be other benefits of requiring CEOs to
negotiate their pay
with employees. First, it may improve morale for employees and
lead to better
6. alignment within each company.7 With better understanding and
communication between the bottom and top of the corporation,
managers at all
levels will have better incentives to listen to and work with
their direct reports.
Second, to the degree that this structure leads to a greater
dispersion of wages,
it may help to grow the economy by increasing the spending
power of regular
workers.8
The process of allocating company resources to the pay of top
executives
should not be divorced from considerations of alternative uses
of these
resources. Before this article proposes mechanisms for
executive bargaining,
the next section will explore current trends in unchecked
executive pay and
how they indicate an ignorance of the tradeoffs or alternative
uses of these
significant CEO pay packages. Readers who already believe that
escalating
executive compensation is an existing and harmful trend may
wish to skip to
the description of, and the case for, executive bargaining in Part
IV.
competitive market for chief executives where supply and
demand can exert their traditional
moderating pressures.”).
4 Martin Gelter, Taming or Protecting the Modern Corporation?
Shareholder-Stakeholder
Debates in a Comparative Light, 7 N.Y.U. J.L. & BUS. 641, 646
(2011) (“Today, the US and the
UK are normally thought to be characterized by dispersed
7. ownership, while in most other
countries' economies concentrated ownership persists even in
most of the largest firms.”).
5 Robert J. Rhee, Intrafirm Monitoring of Executive
Compensation, 69 VAND. L. REV. 695, 734
(2016) (“The advantage of employees as monitors compared to
shareholders becomes apparent
when we consider the question of information through the lens
of market efficiency.”); Wanjiru
Njoya, The Problem of Income Inequality: Lord Wedderburn on
Fat Cats, Corporate Governance
and Workers, 44 INDUS. L.J. 394, 423 (2015) (“[W]orker
participation in setting levels of
executive pay may help to advance the efficiency goals of
company law.”).
6 See infra Section III.B.1; see also Brett H. McDonnell,
Employee Primacy, or Economics Meets
Civic Republicanism at Work, 13 STAN. J.L. BUS. & FIN. 334,
336 (2008) (“Employee primacy
is likely to create the most surplus within a corporation due to
incentive effects and the wealth of
information that employees possess.”).
7 See infra Section III.B.3; see also Jim Harter & Annamarie
Mann, The Right Culture: Not Just
About Employee Satisfaction, GALLUP WORKPLACE (Apr.
12, 2017), https://www.gallup.com/wo
rkplace/236366/right-culture-not-employee-satisfaction.aspx
[https://perma.cc/S3DX-9N4A] (pre
senting evidence that engaged employees consistently correlate
with better business outcomes and
that “common philosophies and practices” of engaged
workplaces involve corporate leaders
having regular, open communication with employees).
8 Njoya, supra note 5, at 407 (“It is clear that extreme income
inequality is harmful to economic
growth and the integrity of economic institutions.”).
8. 122 KAN. J.L. & P B. POL’Y Vol. I :1
III THE PROBLEMS WITH UNRESTRAINED EXECUTIVE
COMPENSATION
There is a growing consensus that the process of executive
compensation
in the United States is problematic.9 Even those who celebrate
the American
tradition of exalting captains of industry and those who are not
uncomfortable
with significant wage inequality are somewhat taken aback by
today s
executive compensation practices. 10 A significant consequence
of this
problem, and an indicator of its severity, is that pay for other
employees has
stagnated over time while executive compensation has
escalated.11
According to the many commentators who have studied the ratio
between
the average pay for CEOs of large companies and the average
pay of workers,
this ratio was between twenty and thirty-to-1 in the 19 0s and
early 1970s,
between forty and 50-to-1 in the 1980s, more than 100-to-1 in
the 1990s, more
than 00-to-1 in the 2000s12 and currently at 278-to-1 after a
decline during the
2008 financial crisis.1 This growth is such that an infamously
excessive
corporate pay package of 10 million, considered an outlier in
9. 1998,1 is only
9 Steven A. Bank et al., E ecutive Pay What Worked , 2 J.
CORP. L. 59, 1 (201 ) (noting the
substantial consensus that something is seriously amiss with
executive pay . . . . ) Robert C.
Downs, E ecutive Compensation n a Culture of Greed and
Selfishness s There Room for a
Theory of Enough , AUL NER L. REV. 5, (2012) (describing
CEO compensation as
having run amuck ) Rhee, supra note 5, at 702 0 (noting the
empirical literature on the
subject) Susan J. Stabile, Viewing Corporate E ecutive
Compensation Through a Partnership
Lens A Tool to ocus Reform, 5 WA E OREST L. REV. 15 , 15
(2000) hereinafter Stabile,
Viewing Corporate E ecutive Compensation (noting that
criticizing executive compensation has
become something of a national pastime. ).
10 David A. Westbrook, Notes Toward a Theory of the E
ecutive Class, 55 BU . L. REV. 10 7,
10 9 (2007).
11 Stephen Plass, Wage Compression as a Democratic deal, 25
CORNELL J.L. PUB. POL 01,
02 0 (201 ) (noting the disparity between lavish pay packages at
the top and the fight for a
living wage at the bottom) Njoya, supra note 5, at 2 ( W ages
for ordinary workers continue
to decline in real terms while managerial remuneration soars. ).
12 Bank et al., supra note 9, at 8 9 Downs, supra note 9, at 5 ,
Erica Beecher-
Monas, The Risks of Reward The Role of E ecutive
Compensation in inancial Crisis, VA. L.
BUS. REV. 101, 10 (2011) Peter M. Cicchino, The Problem
Child An Empirical Survey and
10. Rhetorical Analysis of Child Poverty in the nited States, 5 J.L.
POL 5, 72 7 (199 ) John
W. Hennessey, Jr., The Ethics of Business Decision-Making, 27
VT. L. REV. 8 , 8 (200 )
Nathan nutt, E ecutive Compensation Regulation Corporate
America Heal Thyself, 7 ARI .
L. REV. 9 , 500 (2005) Rhee, supra note 5, at 70 Alberto R.
Salazar John Raggiunti, Why
Does E ecutive Greed Prevail in the nited States and Canada but
Not in Japan The Pattern of
Low CEO Pay and High Worker Welfare in Japanese
Corporations, AM. J. COMP. L. 721,
721 22 (201 ) David I. Walker, Who Bears the Cost of E cessive
E ecutive Compensation and
Other Corporate Agency Costs , 57 VILL. L. REV. 5 , 59
(2012).
1 Lawrence Mishel Julia Wolfe, CEO Compensation Has Grown
Since , ECON.
POL INST. (Aug. 1 , 2019)
https://www.epi.org/publication/ceo-compensation-2018/
https://perma.cc/ N N-M NP .
1 Stabile, Viewing Corporate E ecutive Compensation, supra
note 9, at 1 1, 1 1 n.25 (reporting
2019 W TK N E EC T VE BARGA N NG 12
slightly above the median pay for the CEO of a large firm
fifteen years later.15
In absolute terms, this is an annual transfer of 25 billion to the
top 10,000
executives1 while many corporations pay their CEOs more than
they pay in
federal income taxes. 17 Also, because this quantification of
rising executive
11. pay does not count executives beyond a handful of high-earners
at these
predominantly large companies, the above numbers understate
the larger
problem.18
If the rise in executive compensatio n tracked the productivity of
executives or allowed for a rising standard of living for lower -
paid workers,
this trend might not be problematic. However, when executive
compensation
far outpaces growth of the entire economy,19 while inflation-
adjusted wages for
lower-wage workers are declining,20 there is a sense that
wealth is being
transferred from low-income to high-income individuals.21 The
following
sections will explore whether this transfer is productive for
companies,
impactful on worker wages, or detrimental to the larger
economy and society.
A Rising Executive Compensation is Unnecessary
irst, system-wide escalation in executive compensation is not
necessary
because it does not convey useful information about the value
of any given
executive/firm or serve as motivation for executives. This is
similar to how
everyone in a stadium standing up to see better leaves no one
able to see better
(or able sit down, for that matter).22
Executive pay has the same motivational power whether all
similarly-
12. Jack Welch made 2.8 million in salary and 7.2 million in
bonuses in 1998, earning him
significant publicity ).
15 Plass, supra note 11, at 0 (noting that the median
compensation for CEOs of large companies
was 9.7 million in 2012).
1 Walker, supra note 12, at 58.
17 Rhee, supra note 5, at 705.
18 See Walker, supra note 12, at 0 1 (noting that the above
figures only count the top five
executives at each company and do not count second-tier vice
presidents).
19 Michael B. Dorff, The Group Dynamics Theory of E ecutive
Compensation, 28 CARDO O L.
REV. 2025, 2027 (2007) (noting that CEO pay has outpaced
inflation) Rhee, supra note 5, at 97,
70 (noting and listing the disparate growth rates between CEO
pay and worker pay).
20 Cicchino, supra note 12, at 72 7 ( After-tax income for CEOs
during the 1980s increased in
inflation adjusted terms by . During the same period, production
workers real hourly pay
decreased by 7 . ) rant Crandall et al., Hiding Behind the
Corporate Veil Employer Abuse of
the Corporate orm to Avoid or Deny Workers’ Collectively
Bargained and Statutory Rights, 100
W. VA. L. REV. 5 7, 5 8 9 (1998) (noting the decline in real
wages for most workers in the
1980s and 1990s, with a decline of 1 . for blue-collar male
employees).
21 Plass, supra note 11, at 0 ( W age growth for senior
managers continue to outpace that of
other workers thereby pushing wage divergence to a historical
high mark. ).
13. 22 THOMAS SOWELL, BASIC ECONOMICS 70 71 ( th ed.
2011) (describing the fallacy of
composition).
12 KAN. J.L. & P B. POL’Y Vol. I :1
situated CEOs make 250,000 per year, 2.5 million per year, or
25 million
per year. Psychological studies show that increases in pay past a
comfortable
wage do not boost motivation however, being paid less than
peers causes a
decline in motivation.2 Defenders of high CEO pay point to the
individual
effects of executives being paid less than peers2 while ignoring
the system-
wide effects of annual pay raises that keep each CEO above the
reported
median executive pay.25 In other words, paying each CEO more
does not have
any productive effects on the economy and only results in a
greater transfer of
wealth to high-income earners.
Empirical studies support these ideas by demonstrating that
large
increases in pay for top-income earners did not lead to
improved economic
performance.2 Comparisons of conditions for the top one
percent of earners
with economic growth indicate that the rising share of overall
income accruing
to top earners is not correlated with growth of the overall
economy and is,
14. furthermore, correlated with a decline in growth for middle-
income workers.27
Differences in pay practices in other countries provide concrete,
anecdotal
support. or example, the CEO of Toyota received less than one-
tenth the pay
of the highest-paid CEO in the auto industry and generated the
highest return
among the five largest automakers.28
urthermore, because low-wage, blue-collar workers are
struggling to
maintain a living wage, there is much more room for a de-
escalation in wages
at the executive level than elsewhere in companies.29 So, given
that CEOs are
motivated by their amount of pay relative to peers, and given
that this pay is
currently much higher than alternative uses of executive skills,
a systematic
reduction of executive compensation would not affect the
economic or
2 atie Johnston, Efforts to Regulate CEO Pay Gain Traction,
BOS. LOBE (Oct. 25, 201 , :2
PM), https://www.bostonglobe.com/business/201
/10/25/growing-effort-limit-ceo-pay/1V
Cu Mk Jva RmUb RN/story.html https://perma.cc/D8 D- JT
(citing the work of Harvard
Business School professor Michael Norton).
2 Bengt Holmstrom, Pay Without Performance and the
Managerial Power Hypothesis A
Comment, 0 J. CORP. L. 70 , 707 (2005) ( Paying CEOs less
than they think they are worth
based on comparative data is demoralizing. ).
25 d. at 705 ( Currently, we pay him in the top quartile, because
15. we think it is important that he
feels appreciated. ).
2 Josh Bivens Lawrence Mishel, The Pay of Corporate E
ecutives and inancial
Professionals as Evidence of Rents in Top Percent ncomes, 27 J.
O ECON. PERSPECTIVES 57,
(200 ) (citing research).
27 d. at 72 7 (citing research by Piketty, Saez, and Stantcheva,
Jencks and Leigh, and
Thompson and Leight).
28 Salazar Raggiunti, supra note 12, at 722.
29 EN JACOBS ET AL., PRODUCIN POVERT : THE PUBLIC
COST O LOW-WA E PRODUCTION
JOBS IN MANU ACTURIN (201 ) (finding that thirty-four
percent of blue-collar families are
enrolled in one or more public safety net programs).
2019 W TK N E EC T VE BARGA N NG 125
psychological incentives for executives. 0 All of the reasons
that escalating
executive pay is unnecessary support the implementation of a
process whereby
CEOs negotiate their pay with employees.
B Rising Executive Compensation is Inefficient
Next, escalating executive compensation is an inefficient
allocation of
corporate resources. 1 The inflation of CEO pay is inefficient
because it does
not respond well, let alone optimally, to CEO performance, 2
the market, or a
16. judicious budget for the company. Efficiency is the optimal use
of
resources 5 and requires available information about the value
of alternatives
and competition in terms of the quality and price of the service
rendered.
Contrast the current executive compensation process with
boards of directors,
the body responsible for negotiating compensation with top
executives, asking
for bids each year to see if a junior or outside executive could
do the job of the
CEO at a lower cost. Instead, executive compensation decisions
purportedly
focus on avoiding tensions among leaders 7 and hiding any
insecurities about
0 Bivens Mishel, supra note 2 , at ( W e are making a positive
argument, not a normative
one, that the rise in income for the top one percent income was
not necessary to entice the people
in that group to seek those jobs nor to provide effort in those
jobs. ).
1 Rhee, supra note 5, at 758 ( T he extreme pay of a single
senior employee in a corporation
raises the issue of corporate efficiency and income inequality. ).
2 Michael, supra note , at 792 ( C ompensation of the chief
executive has little if any
correlation to performance on the job, by any conventional
measure. ) Beecher-Monas, supra
note 12, at 10 (noting the disconnect between firm performance
and executive pay ).
Salazar Raggiunti, supra note 12, at 728 (noting that executive
compensation remained high
during the 2008 financial crisis). In fairness, average executive
17. compensation did decline in the
aftermath of the financial crisis however, it remained high
compared to inflation-adjusted 20th-
century executive compensation. Also, this temporary decline in
executive compensation. See
Walker, supra note 12, at 59 ( The ratio declined as executive
pay moderated during the
financial crisis, but even in 2009 it continued to exceed 250 to
1. ).
Steven Clifford, How Companies Actually Decide What to Pay
CEOs, ATLANTIC (June 1 ,
2017), https://www.theatlantic.com/business/archive/2017/0
/how-companies-decide-ceo-pay/
5 0127/ https://perma.cc/ HM-B S (noting that tying bonuses to
budgets, while common,
is a bad idea because it incentivizes the executive to use
information asymmetry to produce a
budget projecting low expectations to beat).
5 MAN IW, supra note 1, at 5 (defining efficiency as getting the
most out of resources)
BESAN O BRAEUTI AM, supra note 1, at 207 (defining
technical efficiency as optimal output
given limited inputs).
Andrew C. Sobel, Rosy E pectations Cloudy Horizons, COLUM.
J. EUR. L. 5 , 55 (1998)
(noting that economic efficiency requires full information,
competition, and a lack of price
manipulation) Lary Lawrence, Toward a More Efficient and Just
Economy An Argument for
Limited Enforcement of Consumer Promises, 8 OHIO. ST. L.J.
815, 8 (1987) (noting that value
should be measured by what consumers would be willing to pay
when they have complete
information).
18. 7 Holmstrom, supra note 2 , at 705 0 ( M ost importantly, we
want to avoid arm s-length
bargaining. Compensation is a sensitive matter. ).
12 KAN. J.L. & P B. POL’Y Vol. I :1
company leadership. 8
Therefore, critics 9 and defenders 0 of current executive pay
practices
agree that the market for executive talent is not competitive. 1
This means that
market forces do not moderate executive pay, 2 creating
conditions in which
the rewards for corporate output increasingly collect at the top
of the income
bracket while economic competitiveness declines. These
problems could be
mitigated if CEOs negotiated their pay with other employees. A
decision
process that confronted all employees with the tradeoffs of
alternative uses of
corporate resources would involve competition among
motivated and informed
individuals. However, because it would be distractingly chaotic
for all
employees to agree on the allocation of all resources, it may be
better to have
executives decide on corporate expenditures and negotiate their
pay with non-
executives from across the company.
While inefficiency is a problem for firms and the economy, the
inequity
19. of this situation is that regular workers are exposed to the
competitive
pressures in a way that executives are not. 5 The next section
therefore
explores the degree to which these inefficiencies in executive
compensation
are paid for by consumers, shareholders, or employees.
C Rising Executive Compensation Is Largely Paid for by
Employees
Intuitively, an increase in executive compensation that outpaces
executive
output and firm growth would result in higher prices for
consumers, lower
profits for shareholders, or lower wages for other employees. As
a very
8 d. at 707 (describing a thought experiment in which the
departure of a CEO signals something
to investors, causing a devaluation in stock). This reflects back
to the fallacy of composition. If
CEOs were regularly reevaluated and replaced, this move would
not send the same negative
signal.
9 Downs, supra note 9, at 5.
0 Holmstrom, supra note 2 , at 707 ( The executive market is
not competitive in the normal
sense. ).
1 Michael, supra note , at 795 (1992) (noting significant
imperfections in the market for chief
executives of large corporations ) Beecher-Monas, supra note
12, at 107 (finding the idea of a
competitive market for executive talent questionable at best ).
2 Michael, supra note , at 797 ( T here is nothing approaching a
competitive market for chief
20. executives where supply and demand can exert their traditional
moderating pressures. ).
Rhee, supra note 5, at 98 (summarizing analyses of economists
studying the effects of large
income disparities).
Michael, supra note , at 795 (noting that Japanese firms have
identified high executive
compensation as a key non-tariff barrier to the competitiveness
of American firms).
5 Plass, supra note 11, at 7 ( Corporate regulations to rein in
excessive pay have also failed to
incorporate the interests of the larger workforce so median and
low-wage workers have been left
in the competitive labor marketplace. ).
Jim Staihar, ncome nequality and Pay Ratio Disclosure A Moral
Critique of Section B ,
19 U. PA. J. BUS. L. 57, 88 (2017) ( Presumably, excessive
CEO pay could otherwise be used
2019 W TK N E EC T VE BARGA N NG 127
significant fraction of corporate earnings, excessive executive
compensation
could be meaningfully redirected to these other stakeholders. 7
However, if
high CEO pay resulted mainly in higher prices for consumers or
lower returns
for shareholders, then employees might not be the best group to
sit on the other
side of the table in negotiating executive compensation. Two
theories indicate
21. that this is not the case.
irst, Professor David Walker analyzes the burden of executive
compensation by considering the difference between high CEO
pay in an
individual company and high CEO pay across comparable
companies in an
economy. 8 If high executive pay occurred at a small fraction of
firms, it
would be difficult for existing shareholders to pass on such
firm-specific costs
to consumers or employees. 9 However, if high CEO pay
occurred
systematically across all comparable firms, it could be passed
from the
shareholders who ultimately own the corporation to other
stakeholders (in
higher prices or lower wages).50 This theory suggests that
employees and
consumers will bear the higher cost of excessive executive
compensation when
those excesses occur systematically.
The questionable assumptions behind this theory are that
shareholders
cannot also avoid the cost of high CEO pay at a single company
by selling
shares (i.e., devaluing the company) and also that funds used for
high CEO pay
could not also be potential profits for shareholders even when
the high CEO
pay is systematic. Notwithstanding these uncertainties, there is
value in the
insight that it may be harder for certain groups to avoid bearing
the costs of
rising executive compensation when it is systematic and not an
22. aberration.
To determine how the cost of inefficient CEO pay is divided
among
consumers, shareholders, or other employees, it is useful to
apply incidence
theory to Walker s tax analogy. Incidence theory is the
economic study of
how costs, particularly taxes, are passed from one market
participant to
another. 51 Under this economic model, an imposed cost is
divided among
market participants52 depending on how likely they are to
change behaviors in
to increase shareholder value, raise other workers wages, or
reduce prices charged to
consumers. ) ristopher ingling, Pay Ratio Disclosure Another
ailed Attempt to Curtail
E ecutive Compensation, 18 U. PA. J. BUS. L. 20 , 20 (2015).
7 Walker, supra note 12, at 58 (Professor Walker teaches at
Boston University School of Law,
where he focuses on taxation and executive compensation).
8 d. at 57.
9 d. at 1.
50 d.
51 Herbert Hovenkamp, The ndirect-Purchaser Rule and Cost-
Plus Sales, 10 HARV. L. REV.
1717, 1721 n. 29 (1990).
52 In this case, market participants are the consumers, the
executives of the corporation, the
shareholders supplying capital to the corporation, and the
workers supplying labor to the
corporation.
23. 128 KAN. J.L. & P B. POL’Y Vol. I :1
response to changes in price (their price elasticity ).5 The
reason costs are
divided by elasticities is that participants who are able to avoid
costs by
changing what they buy or sell (high elasticity) will do so,
while participants
who cannot easily change what they buy or sell (low elasticity)
will pay more
in a free market.5
Compared to consumers and shareholders, employees would
have the
most difficult time changing their behavior in response to
higher CEO pay.
Employees invest nontransferable human capital into a company
and may have
to move or accept a lower standard of living when forced to
change jobs.
Meanwhile, consumers can respond to higher prices by
purchasing substitutes
or leaving the market for that particular good, and shareholders
can sell their
shares and invest in other markets. The resulting free market
outcome is that,
when rising CEO pay is allocated through rising prices, lower
shareholder
returns, or cuts in pay and benefits to employees, the brunt of
that cost will fall
on the employees because they cannot as easily leave the
market.
Because employees are more rooted in a company than
transactional
24. consumers and shareholders, they bear more of the cost of rising
executive
compensation. Having this skin in the game makes employees
the ideal party
to sit across the table from the CEO in negotiating the use of
company
resources for executive compensation.
D Rising Executive Compensation Has Negative Effects on the
Economy
Because systematically excessive executive compensation
channels
income from lower-wage to higher-wage individuals,55 it
creates larger effects
on the economy.5 Macroeconomic theory suggests that these
effects will
include not only increasing wealth inequality but also declining
growth for the
entire economy.57
The key reason that concentrated economic power slows growth
is that
high-income people tend to save a greater share of their income
rather than
5 Jerry Brito Jerry Ellig, A Tale of Two Commissions Net
Neutrality and Regulatory Analysis,
1 COMMLAW CONSPECTUS 1, 5 n.1 8 (2007) ( The incidence
of the tax—who really pays—
depends on the elasticities of supply and demand . . . . ).
5 Olga V. otlyarevskaya, Bmg Canada nc. v. Doe & Society of
Composers Authors & Music
Publishers of Canada v. Canadian Ass n of nternet Providers
Why the Canadian Music
Compensation System May Not Work in the nited States, 20
25. BER LE TECH L.J. 95 , 9 8 n.88
(2005) (citing J. BRUCE LINDEMAN, MICROECONOMICS 1
0 (1992)).
55 Walker, supra note 12, at 58 ( Top executive pay represents a
very significant fraction of
corporate earnings . . . . ).
5 Rhee, supra note 5, at 98 (noting that concentrated wealth has
macro-level effects on the
economy).
57 Njoya, supra note 5, at 07 ( It is clear that extreme income
inequality is harmful to economic
growth and the integrity of economic institutions. ).
2019 W TK N E EC T VE BARGA N NG 129
spending it.58 The diminishing utility of additional dollars
means that people
with more dollars will find fewer uses for additional dollars,
and therefore
save, rather than spend them.59 In contrast, poor and middle-
class earners tend
to spend what they earn, circulating wealth back into
production. 0 Therefore,
when an increasing share of income is allocated to top earners,
less is spent on
the products that companies make. 1
The resulting dynamic is a prisoner s dilemma among
corporations. Each
company relies on consumers having enough income to buy
their products, and
all will suffer if employees do not make a living wage. 2
Because employee
pay is set by individual companies, if one company decides to
26. pay its workers
more, it will lose more in profits or executive pay that it will
gain in higher
sales. But if all companies systematically raised worker wages,
there would be
higher growth. This systematic change in wage-setting behavior
would
appear to require a process imposed on all players to direct
them to act in their
mutual best interest. However, a process that offers each
company the benefits
of an internally aligned workforce, while also motivating a
more even
distribution of company resources across employees, may
overcome this
prisoner s dilemma.
Rising executive pay is therefore a danger to the larger
economy. If
CEOs across firms had to negotiate their pay with employees,
the resulting
systematic dispersion of resources would appear to promote
economic growth.
E Rising Executive Compensation Creates Negative Political
and Social
Effects
Systematically increasing the pay of top earners also creates
larger costs
58 Jeff Desjardins, How Americans Make and Spend Their
Money, VISUAL CAPITALIST (Mar. 19,
2019), https://www.visualcapitalist.com/how-americans-make-
spend-money/ https://perma.cc/N
B 9-R S (citing information from the U.S. Census Bureau).
27. 59 Joseph Bankman Daniel Shaviro, Piketty in America A Tale
of Two Literatures, 8 TA L.
REV. 5 , 50 (2015) (describing the Diamond-Saez view of the
marginal value of consumption
for top earners).
0 aren E. Dynan et al., Do the Rich Save More , 112 J. POL.
ECON. 97, 98 (200 ) (citing
reenhouse).
1 Salazar Raggiunti, supra note 12, at 729 (noting that the
overall economy does not function
well when income is concentrated at the top).
2 Beecher-Monas, supra note 12, at 108 09 (explaining when
workers do not make sufficient
wages to buy the widgets produced by society s firms, the firms
will suffer ).
See generally TOMMASO CIARLI ET AL., STRUCTURAL
CHAN ES AND ROWTH RE IMES
(2017).
Njoya, supra note 5, at 0 (warning that income inequality should
not reach levels that harm
the economy) Beecher-Monas, supra note 12, at 102 ( Curbing
executive pay is vital to
controlling risk and preventing economic collapse. ).
1 0 KAN. J.L. & P B. POL’Y Vol. I :1
for society. 5 irst, it should be noted that this is not a necessary
reality—a
concentration of wealth in the hands of our wisest and most
capable citizens
could allow our society to overcome collective action problems.
28. However,
many modern executives appear to be more akin to token
philanthropists and
tax-dodgers 7 rather than the public benefactors who led U.S.
corporations in
the 1950s. 8
Recent research across countries finds that economic inequality
contributes to political instability. 9 One reason is that
excessive CEO pay
creates a pervasive sense of unfairness and undermines public
faith in
capitalism.70 Another reason is that widespread economic
struggles fuel
grievances that politicians then play to, leading to divisive
rather than unitary
social movements.71
In fact, even critics of the executive compensation literature
who argue
that excessive executive compensation is economically
insignificant still
acknowledge that it has symbolic, social significance.72 This is
likely because
class-based animosity poses a danger for the wealthiest
Americans,7
especially when the large portion of Americans who consider
themselves to be
5 Robert E. Wagner, Mission mpossible A Legislative
Solution
29. for E cessive E ecutive
Compensation, 5 CONN. L. REV. 5 9 (2012) (noting the
workplace hostility and social animosity
that accompanies excessive executive pay).
or example, if our wealthiest citizens were combating climate
change rather investing in
technology that will allow them to live off-planet.
7 ANAND IRIDHARADAS, WINNERS TA E ALL: THE ELITE
CHARADE O CHAN IN THE
WORLD 255 (2018).
8 Harwell Wells, Corporation Law s Dead Heroic
Managerialism Legal Change and the
Puzzle of Corporation Law at the Height of the American
Century, 15 U. PA. J. BUS. L. 05, 0
(201 ) (citing criticism of 1950s corporate America as focusing
more on being great innovators
and public benefactors rather than maximizing profit)
hereinafter Wells, Corporation Law s
Dead .
9 See generally Mark J. Roe Jordan Siegel, Political nstability
Effects on inancial
Development Roots in the Severity of Economic nequality, 9 J.
COMP. ECON. 279 (2011).
70 Rhee, supra note 5, at 97 ( The compensation problem has
30. created a public perception of pay
uncoupled from performance and a broad sense of social
inequity. ) Michael, supra note , at
79 ( S ocial morals are offended by such corporate largesse ).
71 Susan B. lasser, Our President of the Perpetual Grievance,
NEW OR ER (Mar. 29, 2019),
https://www.newyorker.com/news/letter-from-trumps-
washington/our-president-of-the-perpetual-
grievance https://perma.cc/2BH8-U N William alk, The Politics
of Grievance, WEE (Oct.
5, 2018), https://theweek.com/articles/799887/politics-grievance
https://perma.cc/ABA2-
AHV .
72 Susan J. Stabile, My E ecutive Makes More Than Your E
ecutive Rationalizing E ecutive Pay
in A Global Economy, 1 N. . INT L L. REV. , 70 (2001)
hereinafter Stabile, My E ecutive
Makes More Than Your E ecutive (noting noneconomic reasons
to care about pay disparity).
7 Westbrook, supra note 10, at 10 2 (the author is a defender of
high CEO pay but also notes that
class-based politics is probably not a good thing ).
31. 2019 W TK N E EC T VE BARGA N NG 1 1
middle class realize that they are not making middle-class
wages.7
urthermore, concentrations of wealth are associated with
widespread
corruption.75 One reason for this link is concentrations of
economic power
leading to concentrations of political power pursued to maintain
that wealth.7
Another reason is that the vast majority of behaviors are not
directly monitored
by law-enforcement officials and therefore governed by social
norms.77 If there
is a pervasive sense that the economic system is not fair, norms
break down
and people feel justified in stealing, cheating, and undermining
the system.78
Therefore, a concentration of income among top earners
imposes other
costs on the larger society. Alternatively, a greater dispersion of
income—one
that at least aligns pay with performance79—is a public good
32. which public
policy should promote.80 A policy of CEOs negotiating their
pay with
employees should thereby promote public welfare.
F Rising Executive Compensation Reduces Motivation for
Workers and
Executives
Many commentators have noted that allocating a rising amount
of firm
wages to executives lowers employee morale.81 A sense of
disconnect between
compensation and productivity undermines the motivation of
individuals and
the cohesion within teams.82 Declining employee morale and
cohesion, in turn,
leads to a decline in output and shareholder profits.8 Becaus e
corporate pay-
setting processes have systematically ignored employee
interests, even during
times of financial health and competitive advantage,8 a process
whereby
7 Plass, supra note 11, at 0 .
33. 75 Njoya, supra note 5, at 07.
7 As nequality Grows so Does the Political nfluence of the
Rich, ECONOMIST (July 21, 2018),
https://www.economist.com/finance-and-
economics/2018/07/21/as-inequality-grows-so-does-the-
political-influence-of-the-rich https://perma.cc/AV U-L79 .
77 Daron Acemoglu Matthew O. Jackson, Social Norms and the
Enforcement of Laws, 15 J.
EUR. ECON. ASS N 2 5, 2 7 (201 ).
78 See id.
79 Michael, supra note , at 799 ( M ost public outrage is the
lack of any coordination of pay
with performance . . . . ).
80 Thomas C. rey, Property and Need The Welfare State and
Theories of Distributive Justice,
28 STAN. L. REV. 877, 887 (197 ) ( S ome degree of economic
equality is a public good. ).
81 Rhee, supra note 5, at 97 98 Michael, supra note , at 79
Stabile, Viewing Corporate
E ecutive Compensation, supra note 12, at 1 5.
82 Alfred . Conard, Theses for a Corporate Reformation, 19
U.C. DAVIS L. REV. 259, 2
(198 ) ( A buses of control undermine the faith of workers that
their productivity contributes
proportionately to their own rewards and destroy the perception
34. of commonality in objectives and
benefits that gives dignity to work. ).
8 Salazar Raggiunti, supra note 12, at 7 (linking morale and
productivity) Beecher-
Monas, supra note 12, at 10 .
8 Plass, supra note 11, at 1 (using Verizon and Caterpillar as
examples).
132 KAN. J.L. & PUB. POL’Y Vol.XXIX:1
CEOs negotiate their pay with employees should advance
overall corporate
interests.
However, excessive executive pay also arguably reduces the
motivation
of executives. Microeconomic models indicate that wages that
rise too high
will motivate individuals to choose leisure activities in which
they spend
income over working harder to get more income.85 The reason
for this
counterintuitive outcome is that, while a higher hourly wage
35. makes labor more
valuable, there is a limit to the amount of time available to any
individual.
Therefore, having a large amount of money to spend will tempt
a rational
person from additional hours of work and toward hours of
leisure. This is
consistent with prior arguments about economic concentration
slowing the
overall economy86 because this model concerns marginal units
of leisure
versus overall spending87 and high-earners spendmoney during
leisure time on
fewer high-endgoods rather than a large amount of consumer
goods.88
One apologist for current executive compensation practices
noticed this
phenomenon and used it to defend current treatment of
executives. In response
to arguments that corporations appear to promote conspicuous
consumption by
executives, this commentator argued that corporations
encouraging executives
to lead lavish lifestyles serves the bottom line by preventing
36. executives from
having enough money to retire in luxury.89 Of course, it would
be more
efficient (and, in turn, less harmful to the morale of lower -wage
employees) to
pay executives a wage that motivates performance without
creating a
distracting amount ofwealth in the first place.90
Furthermore, psychological research indicates that rising
executive pay,
as an extrinsic reward, is a less effective motivator than a
connection to the
company and its employees, which is an intrinsic reward.91
More importantly,
85 BESANKO&BRAEUTIGAM, supra note 1, at 189–90.
86 See supra Section III.D.
87 Because marginal (i.e., incremental adjustments to) leisure is
not the same as overall spending,
top earners can have higher incremental amounts of leisure at
higher incremental amounts of
compensationwhile still spending a lower fraction of their
earnings than lower-paidworkers.
88 LaVaughn M. Henry, Income Inequality and Income-Class
37. Consumption Patterns, ECON.
COMMENT., Oct. 2014, at 1, 1–2 (noting that higher income
quintiles spend a greater fraction of
their income on luxuries than lower incomequintiles).
89 Stephen M. Bainbridge, Executive Compensation: Who
Decides, 83 TEX. L. REV. 1615, 1630–
31 (2005) (citing Henderson and Spindler, who hypothesize that
firms encourage conspicuous
consumption by their executives to prevent them frombeing able
to “accumulate sufficientwealth
to fund a luxurious retirement”).
90 This is the concept of “screw-you money” (the real term is
more vulgar). See Ethan Wolff-
Mann, How Much Money Would You Need to Ditch Your Job—
Forever?, MONEY (Oct. 17,
2016), http://money.com/money/4187538/f-u-money-defined-
how-much-calculator/ [https://perm
a.cc/T4UW-S7F2].
91 Susan J. Stabile, Motivating Executives: Does Performance-
Based Compensation Positively
Affect Managerial Performance?, 2 U. PA. J. LAB. & EMP. L.
227, 245 (1999) [hereinafter
38. 2019 W TK N E EC T VE BARGA N NG 1
extrinsic motivators can crowd out the intrinsic motivation that
can remain
effective even when the agent is not being directly monitored.92
This often
leads to selfish, opportunistic actions rather than behaviors that
support the
mission and institution of the corporation.9 Rising executive
pay is therefore
more likely to isolate the CEO from other employees and
incentivize a
transactional, rather than loyal, mindset among executives.
A process for CEOs to negotiate their pay in company resources
with
other employees may improve workplace morale by placing
reasonable
restrictions on wage inequality. However, because it would also
give the CEO
significant incentives to appeal to workers and foster
understanding between
the top and bottom of a company, it could also improve the
company culture.
39. G Responses to Alternative Explanations for Rising Executive
Compensation
Arguments that the pay-setting process for executives is not
broken are
not able to explain the continuing escalation of executive
compensation or fall
apart when applied to lower-wage employees. The defenses of
current
executive compensation practices therefore do not argue against
an executive
bargaining process whereby CEOs negotiate their pay with other
employees.
irst, tournament theory explains high executive compensation as
not
only compensation for executive efforts but, more importantly,
as a motivator
for other employees to perform well and thereby rise in the
ranks at the
company.9 While it may motivate employees within the
company (skeptics
disagree95), it does not explain the continued rise of executive
pay across
companies because employees are not becoming systematically
40. less ambitious
and therefore in greater need of a big, tournament prize.9
Second, defenders of high executive pay argue that it is a status
symbol or
Stabile, Motivating E ecutives .
92 risten Underhill, When E trinsic ncentives Displace ntrinsic
Motivation Designing Legal
Carrots and Sticks to Confront the Challenge of Motivational
Crowding-Out, ALE J. ON RE .
21 , 215 (201 ).
9 See generally Lynn A. Stout, Killing Conscience The
nintended Behavioral Consequences of
Pay for Performance , 9 J. CORP. L. 525 (201 ) (contrasting
selfish incentives to prosocial
incentives in the workplace).
9 Iman Anabtawi, E plaining Pay Without Performance The
Tournament Alternative, 5
EMOR L.J. 1557, 1559 (2005) Westbrook, supra note 10, at
1052.
95 Bank et al., supra note 9, at 99 Downs, supra note 9, at 7.
9 See Nothing Special MBAs are No Longer Prized by
Employers, ECONOMIST (June 1 , 201 ),
https://www.economist.com/whichmba/nothing-special-mbas-
41. are-no-longer-prized-employers
https://perma.cc/NL H- A58 (indicating that the supply of MBA
graduates is so large to have
caused the value of the degree to decline).
1 KAN. J.L. & P B. POL’Y Vol. I :1
instance of costly signaling rather than motivation for
performance.97 While
this argument appears to abandon the tenets of capitalism,98 it
could potentially
explain an escalation in highly visible CEO pay packages
designed to attract
attention of investors.99 However, this does not explain why
such corporate
generosity is directed only at executives and not other
employees.100 If
anything, a large display of financial strength through raising
median wages
would best benefit the company by showing corporate social
responsibility
rather than a desire to resurrect the aristocracy.101
42. Third, rising executive pay is attributed to increasing
bargaining power
for executives attributed to their power to step down.102
However, there is no
reason for companies to only raise executive compensation as
lower-wage
workers have become increasingly likely to change jobs for
better
opportunities.10 Also, CEOs in industries where their skillsets
are more
transferrable are easier to replace for the same reasons, making
it easier for
them to leave.10 Alternatively, a rise in a CEO s bargaining
power could
derive from an increase in the firm s size and market power.105
Though firm
size is correlated with CEO pay10 (in the United States107),
this does not
inevitably lead to income disparities dominant firms could
outcompete rivals
by raising industry wages for workers.108
97 See Westbrook, supra note 10, at 10 9.
98 d. at 10 9 51, 105 .
99 See Beecher-Monas, supra note 12, at 108 (noting hidden pay
43. common in executive pay
packages ) Bank et al., supra note 9, at 91 Walker, supra note
12, at 5 55.
100 If signaling were the only consideration, the company could
just as well throw stockholders a
big party where they set fire to a large pile of cash.
101 Jason Brandenberger, Best-Laid Plans Corporate Social
Responsibility Often Goes Awry,
ARI . J. ENVTL. L. POL 10 1, 10 2 (201 ) (noting that socially
responsible expenditures
encourage customer loyalty and public goodwill).
102 Randall S. Thomas, E plaining the nternational CEO Pay
Gap Board Capture or Market
Driven , 57 VAND. L. REV. 1171, 1177 (200 ) (describing
Opportunity Cost Theory) hereinafter
Thomas, E plaining the nternational CEO Pay Gap .
10 John ogby, Employment . The Transient Age, ORBES (Sept.
10, 2009, 12:00 AM),
https://www.forbes.com/2009/09/09/temporary-employment-
new-job-opinions-columnists-john-
zogby.html 1 e 8715c2 https://perma.cc/HU -PDVT .
10 See generally Robert Parrino, CEO Turnover and Outside
Succession A Cross-Sectional
Analysis, J. IN. ECON. 1 5 (1997) (reporting that CEOs in
industries of homogenous
44. companies have greater rates of turnover and succession).
105 Walker, supra note 12, at 0 (describing the research of
abaix and Landier, though also
noting that their findings were contradicted by Bebchuk and
rinstein).
10 Michael, supra note , at 801.
107 Robert J. Jackson, Jr. Curtis J. Milhaupt, Corporate
Governance and E ecutive
Compensation Evidence from Japan, 201 COLUM. BUS. L.
REV. 111, 11 (201 ) (noting that
the relationship between CEO pay and firm size only occurs in
Japanese firms that set CEO pay
with American-style compensation committees).
108 See generally Lauren Thomas, Amazon’s Minimum Wage
Hike Puts the Pressure on Walmart
Target and Others to ollow, CNBC (Oct. 2, 2018, : 5 PM),
https://www.cnbc.com/2018/10/02/
2019 W TK N E EC T VE BARGA N NG 1 5
Therefore, defenders of high executive compensation cannot
explain both
why it is systematically rising in the United States and why the
45. causes of its
rise do not apply to non-executive employees. While these
questions are
addressed below, at this juncture, it is sufficient to note that
CEOs would have
difficulty justifying current pay levels to lower-wage
employees, indicating
that these employees would be apt negotiators against excessive
executive
compensation. Defenders of executive compensation practices
are correct in
arguing that market forces are needed in setting executive
pay,109 and the
proposal described in this article aims to implement a better
market mechanism
than current executive pay-setting processes.
H Rising Executive Compensation Indicates a lawed CEO Pay
Setting
Process
Effective executive compensation should attract talent and
reward
performance,110 while excessive executive compensation is an
amount that is
46. not necessary to achieve these goals or signal anything
meaningful to
investors.111 Because economic theory indicates that a free
market would not
produce such inequities,112 the prevalence and acceleration of
excessive
executive pay indicates a pay-setting process that is
unrestrained.11
The core process behind effective compensation is not market
actions of
consumers and shareholders but rather a negotiation between the
CEO and the
board of directors.11 As indicated above, the board has failed to
act as a
negotiating partner.115 This system is frustrating for
shareholders who are too
dispersed and distant to negotiate directly with CEOs. But this
does not mean a
better negotiating partner does not exist.
One successful investor asked about high-paid CEOs, How can
they look
their employees in the eye 11 The answer is that they do not.117
47. amazons-minimum-wage-hike-puts-pressure-on-walmart-target-
to-follow.html https://perma.cc/
W P9- MDA .
109 Thomas, E plaining the nternational CEO Pay Gap, supra
note 102, at 117 .
110 Beecher-Monas, supra note 12, at 10 07.
111 Staihar, supra note , at 88.
112 Njoya, supra note 5, at 00 01 (describing Adam Smith s
theories on a well-ordered market).
11 d. at 95 (noting unconstrained managers ).
11 Michael, supra note , at 802.
115 See Beecher-Monas, supra note 12, at 107 08 Stabile,
Viewing Corporate E ecutive
Compensation, supra note 1 , at 220 ( We do not have the
functional equivalent of arm s length
negotiation in a corporation . . . ) Westbrook, supra note 10, at
105 .
11 Downs, supra note 9, at .
117 Walker, supra note 12, at 55 (noting that labor does not
participate in the executive pay-
setting process).
1 KAN. J.L. & P B. POL’Y Vol. I :1
48. IV HOW AND WHY CEOS SHOULD NEGOTIATE THEIR
PAY WITH OTHER
EMPLOYEES
The previous sections indicate that the current system allows for
an
increasingly problematic escalation of executive pay. This trend
suggests that
current CEO pay-setting processes do not confront company
decision-makers
with the tradeoffs of alternative uses for the resources that
otherwise go into
executive compensation. If companies had to face the
alternative uses of
company resources used in executive pay packages, large
companies would
become more efficient. This article suggests that the ideal
process for
considering alternative uses involves lower-wage employees
negotiating
executive compensation directly with the CEO. Because this
inserts the
perspectives of the broader corporation, it may also lead to
more equitable pay
49. practices. Also, regular discussions between management and
workers about
each side s contributions and remunerations could improve the
culture of
participating companies.
This part will propose ideas for how this executive bargaining
process
could occur, present theoretical benefits of this process, and
then point to
evidence that these benefits would occur in practice. urther, this
part will
demonstrate that small changes to key parts of corporate
governance could
produce significant positive benefits for the private sector.
A How CEOs Could Negotiate Their Pay with Other Employees
Under current practices, corporations allocate executive pay
through a
process that is detached from other expenditures by the
corporation. The board
of directors chooses the top executives and the pay packages for
the very top
few,118 and then those executives decide all of the other
50. expenditures for the
companies that employ them.119 The board of directors
allocates resources for
CEO pay through the compensation committee.120 This body is
composed of
directors who are not managers in the corporation and informed
by an outside
expert.121 To encourage the board to negotiate CEO pay in the
interests of
shareholders, corporations have implemented every precaution
to prevent a
cozy relationship between compensation committees and
CEOs.122 As will be
118 Michael, supra note , at 802 (describing the pay decisions
made by directors).
119 Staihar, supra note , at 92 (noting that pay for rank-and-file
employees is decided by
executives and not by the board of directors).
120 Beecher-Monas, supra note 12, at 119 20 (noting that
compensation committees were
introduced to prevent the CEO from having undue influence
over executive compensation).
121 Michael, supra note , at 797 99 (describing compensation
committees and compensation
51. consultants, noting their relationship with the CEO).
122 Stabile, Viewing Corporate E ecutive Compensation, supra
note 1 , at 222 (noting of
structured independence in executive compensation bodies, t
here simply does not seem to be
2019 W TK N E EC T VE BARGA N NG 1 7
explained in greater detail later, the resulting separation of
executive
compensation decision-makers from the people with knowledge
of the
corporation and an interest in its future success has created an
apathetic
negotiation process, leading to a steady uptick in CEO pay.12
The pay of every employee of a company—including the CEO—
should
be determined through fair and informed negotiation.12 If the
current system
of negotiated executive compensation by outside board members
does not
produce efficient executive pay, perhaps the corporation could
52. involve lower-
wage employees in the process.125 This does not mean lower -
wage workers
giving non-binding opinions,12 conducting protest or traditional
collective
bargaining actions,127 or serving on boards within current pay-
setting
processes.128 Rather, this article proposes processes whereby
CEOs engage in
meaningful negotiations over executive pay with employees.
The vision for this process is one in which lower managers and
employees, who believe that their individual or department
contributions to the
corporation have not been rewarded, will be able to ask the CEO
to justify the
requested amount of executive compensation. This can take the
form of an
elected body of employee representatives that decide by
majority vote or an
open process of dialogue with decisions approved by a vote
among all
employees. Either way, this process needs to be transparent to
prevent deal-
making that benefits participants in the process rather than the
53. interests they
stand for. Also, employee participation in these negotiations,
whether through
elected representatives or open forums, should be a voluntary
process that
attracts those most interested in, and capable of, advocating for
valuable
alternative uses of corporate resources.
If executives cannot justify their requested pay packages
through this
negotiation, they trigger an impasse129 or accept a lesser
amount, which leaves
the company with more resources and leaves the CEO with
insight about types
more that can be done to make the board a better representative
of shareholder interests. ).
12 See infra Section V.A.
12 Staihar, supra note , at 87 ( The pay to each worker in a
company should be the outcome
of a fair process of bargaining. ).
125 Plass, supra note 11, at 1 (noting that workers can point out
the unfairness of high CEO pay
if their output has not been similarly rewarded).
54. 12 Rhee, supra note 5, at 722 (describing a process of regular
non-binding votes by employees on
executive pay packages).
127 Plass, supra note 11, at 01 ( W age compression can be
achieved through unrepresented
worker protest and collective bargaining practices that link the
plight of workers to the overall
compensation practices of their employers . . . . ).
128 Njoya, supra note 5, at 9 (describing a proposal for workers
to sit on compensation
committees).
129 The response to impasse in executive bargaining would
depend on whether the process is
voluntary or obligatory, as described below.
1 8 KAN. J.L. & P B. POL’Y Vol. I :1
of workers who are underpaid. If executives can justify their
requested pay
packages, then the company moves forward as usual but with
employees who
understand and support the amount of resources allocated to
executive
55. compensation.
As a precaution and side-note: executive bargaining should be
restricted
to company resources and not stock options. Many executives
are paid in stock
options, which give preferential treatment to option-holders and
dilute the
value of shares for common shareholders.1 0 Employees w ould
have few
incentives against giving stock options, so the board of
directors should
continue to be the body that negotiates stock options with the
CEO.1 1
Also, to be clear, this proposal does not radically restructure
corporate
law. The board of directors will remain ultimately responsible
for the
functioning of the corporation.1 2 However, instead of
continuing to use an
ineffective pay-setting process for top executives, the board
would oversee a
process in which employees act as informed and motivated
representatives of
56. various parts of the corporation in negotiating executive pay
with the CEO. In
implementing one of the processes proposed below, the board of
directors
would use assets available to the company (the employees) to
regulate
executive compensation. This executive-employee negotiation
could be either
voluntary or obligatory.
V E B I G -F
N
A voluntary process would involve the board facilitating a
negotiation
over executive compensation between the CEO and employees
but then
deciding executive compensation through the normal process if
the two sides
are not able to reach an agreement. The first reason a CEO
might take these
negotiations seriously is for public-facing corporate social
responsibility
purposes. Corporate leaders are underta king voluntary actions
and
57. commitments that seem to work against short-term company
interests but are
increasingly seen as attracting customer loyalty and supporting
long-term
sustainability for the business.1 Companies are finding that
designations such
as benefit corporation and B Corp certification attract a ready
supply of
1 0 Rick Wayman, Should Employees Be Compensated With
Stock Options , INVESTOPEDIA (June
25, 2019),
https://www.investopedia.com/articles/analyst/091202.asp
https://perma.cc/T H8-
B C .
1 1 See generally id. The author would note, however, that the
practice of granting stock options is
fraught with unproductive incentives.
1 2 Rhee, supra note 5, at 722 ( U nder state corporate law, the
board has the ultimate authority
to manage the business and affairs of the corporation, including
setting compensation. ).
1 Brandenberger, supra note 101, at 10 1 2 (defining corporate
social responsibility and
noting the theory behind it).
58. 2019 W TK N E EC T VE BARGA N NG 1 9
consumers looking to support the public good.1 Along similar
lines,
corporations that negotiate executive compensation with their
own employees
will be able to stand out as taking action against the widely
perceived problem
of income inequality.1 5
The second reason a CEO might voluntarily negotiate his or her
wage
with employees involves the enactment of new tax incentives to
specifically
support executive bargaining. As discussed previously, rising
income
inequality harms the larger economy and society.1 Conversely,
a greater
degree of wage compression is a public good, justifying
government
intervention in economic theory1 7 and public opinion.1 8
Though a systematic
59. shift in resources from executive compensation to worker
compensation would
benefit the economy and society, individual companies may
perceive a
prisoner s dilemma in taking the first step.1 9 overnments could
take action to
coordinate this private provision of an important public good
(wage equality)
by offering tax incentives to companies that can demonstrate
that they have
negotiated their CEO pay with employees.1 0 Though a
reduction in corporate
taxes for companies implementing executive bargaining imposes
its own
1 See generally Janine S. Hiller, The Benefit Corporation and
Corporate Social Responsibility,
118 J. BUS. ETHICS 287, 287 01 (201 ) (noting that a benefit
corporation is a business entity
incorporated under a mandate to pursue the public good and not
only shareholder profits) see
generally John Sensiba, Becoming a B Corp Validates Long-
Held Culture of Community and
Environmental Stewardship, 2 PUB. ACCT. REP., Nov. 2018, at
1, 5 7 (describing B Corp
60. certification as a third-party designation of socially responsible
business, analogous to air Trade
certification as an indicator of socially responsibl e coffee-
production).
1 5 Most See nequality Growing but Partisans Differ over