Question

One policy to address the issue of executive pay was implemented by J.P. Morgan, it stated that _________

a. there should be no limit on what top executives can earn.
b. managers should earn no more than twenty times the pay of other employees.
c. top managers should make the same amount as other employees.
d. employees can determine how much managers make.
e. the government should determine the worth of each manager's service.

Answer 1

The correct policy implemented by J.P. Morgan to address the issue of executive pay is option b. Managers should earn no more than twenty times the pay of other employees.

Step-by-step explanation:

The correct policy implemented by J.P. Morgan to address the issue of executive pay is option b. Managers should earn no more than twenty times the pay of other employees.

This policy aims to reduce the income disparity between top executives and other employees. By implementing this policy, J.P. Morgan ensures a more equitable distribution of wages within the company.

For example, if the average employee earns $50,000 per year, under this policy, the highest-paid manager would earn a maximum of $1,000,000 per year.