University of Oxford Is High Executive Compensation Ethical Essay

Fairness and executive pay

“Richard Adam, as Finance Director between 2007 and 2016, was the architect of Carillion’s aggressive accounting policies. He, more than anyone else, would have been aware of the unsustainability of the company’s approach. His voluntary departure at the end of 2016 was, for him, perfectly timed. He then sold all his Carillion shares for £776,000 just before the wheels began very publicly coming off and their value plummeted. These were the actions of a man who knew exactly where the company was heading once it was no longer propped up by his accounting tricks.” [1]

Richard Adam’s total remuneration from Carillion for 2016 was £1,060,000 [2], at a time when the Median weekly earnings for full-time employees in the United Kingdom was £538.60 [3].

You may consider the question from the perspective of one or more than one ethical theory. However, you should include in your answer consideration of the issue from the perspective of John Rawls’ theory of justice, and comment on the justice of Richard Adam’s remuneration and his deservingness of and proper entitlement to the monies he received from Carillion.Word count 1000-1200.