Auditing Cases 6th Edition by Mark Beasley,Frank Buckless,Steven Glover,Douglas Prawitt

Exercise 10

A 2002 editorial in BusinessWeek raised issues with compensation received by corporate executives even when the company does not perform well. In 1980 corporate executive compensation was 42 times the average worker compensation while in 2000 it was 531 times the average worker compensation. 3 (a) Do you believe executive compensation levels are reasonable Explain your answer. (c) What type of procedures could corporations establish to help ensure the reasonableness of executive compensation