Question 1 The High Pay Centre reported that FTSE100 chef executives were paid 117 times more than a typical worker's average salary in 2019. This ratio increases further in the banking sector. Required Drawing from academic theory, critically appraise the theories and factors that have driven the growth in executive compensation in the banking and financial sector. [total 50 marks] Question 2 "To maximize shareholder value, executives ought to be paid marginally more than employees to keep costs under control (Marsh, 1957)". Required Describe how the structure of executive compensation contracts should be constructed to mitigate conflicts between principals and agents. In your discussion, explain how information asymmetries can lead to moral hazard and hidden actions. [total 50 marks] Question 3. "When I became Prime Minister, I committed myself to tackling the burning injustices which mar our society. One such is the gender pay gap...... major injustices still hold too many women back" (Theresa May, 2018) Required Identify the factors that influence gender pay differentials and constitute barriers to females from progression to the highest hierarchical positions in an organization. Critically discuss whether the presence of (more) females in senior executive roles improves corporate firm performance and/or risk taking. [total 50 marks] Question 4. Jensen and Murphy's Harvard Business Review article "CEO Incentives-It's Not How Much You Pay, But How" (1990) showed that there was virtually no link between how much CEOs were paid and how well their companies performed for shareholders. If the same analyses were undertaken using 2021 data, a very different picture would emerge. Required Critically evaluate how modern executive remuneration arrangements integrate monetary reward and business strategy via pay-for-performance mechanisms. Referring to agency theory and managerial power, critically discuss whether the relationship between executive pay and firm performance has been fixed. [total 50 marks] Question 5. Donald Trump called high CEO pay in the industrial mid West "a total and complete joke" and "disgraceful". Hillary Clinton lamented that "[t]here's something wrong when the average American CEO makes 300 times more than the typical American worker". Required What are the challenges in determining the compensation arrangements of directors and executives of manufacturing firms? Critically evaluate whether regulatory action is necessary to fix "excessive" compensation or whether better designed compensation contracts are better suited to "cure" this problem. [total 50 marks]