Question

According to noted economist Thomas Piketty rev: 10_02_2018_QC_CS-138299 Multiple Choice top executives are entitled to any level of pay they can negotiate with their board of directors. the annual pay for top executives should include a small guaranteed salary and should include a very large bonus in years where the firm earns higher profits than competitors. all bonuses paid to CEOs should be tied to long-run increases in market share. the income inequality between the salary of company CEOs and the average salary at the company is harmful and unnecessary.

Answer 1

Answer:

the income inequality between the salary of company CEOs and the average salary at the company is harmful and unnecessary.

Explanation:

Thomas Piketty is classified as an extremely social economist along with Joseph Stiglitz and Paul Krugman. Some confuse them as liberal economists, when they are actually against liberal or neoclassical economies. The three of them are famous for promoting economic fairness and equality. E.g. Piketty opposes extremely high CEO salaries while low level employees earn wages that are dangerously close to the minimum wage. He believes that this type of management practices are unsustainable and damage the economy in the long run.

Personally, I believe that the most important sector of the economy is the middle class and that the larger the middle class, the better.