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Critical Enquiry Skills Question 1 The issue of executive pay is primarily a concern of companies, their management, the shareholders of these companies, the employees and all activism and regulatory groups. Below is a brief description of how each of these groups interacts with the issue: Shareholders: these are the real owners of the company. The CEO’s salary is derived from their money, and therefore when misappropriated, it leads to losses. The CEO: as this is his pay, its alteration and regulation concerns his livelihood. Activists groups: with particular regard to the shareholder representative group, they are tasked with ensuring shareholders money is not wasted. Workers Association: these fight for fair remuneration of all employees especially the lowest paid and must assume that very high executive salaries undermine a company’s inability to pay workers on the ground. Regulatory authorities i.e. JSE: their role in ensuring proper conduct is withheld in the running of companies mandate that they investigate discrepancies in the payment of executives. The government: with its primary role being the ensuring of sustainable livelihoods for everyone, it must be concerned with the executive pay and how it affects the productivity of cooperation as well as the income of the lower level employees. Burrell & Morgan’s theory are correctly placed to analyze the social challenge regarding exorbitant executive pay. This is because the nature of this compensation is deemed to introduce social inequality by affecting the level of salaries that can be afforded to lower employees. The executives are in most cases given the responsibility of
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