From intheblack.cpaaustralia.com.au: Executive compensation raises ethical concerns, primarily influenced by John Rawls’ “difference principle,” which argues for a justified income inequality that benefits the worst-off, and Robert Nozick’s “entitlement theory,” which emphasizes voluntary transactions.

The relationship between executive pay and company performance is often tenuous, with evidence suggesting that compensation is more closely correlated with firm size than actual performance.

Non-executive directors on remuneration committees must determine a “just wage” that appropriately incentivizes executives without exceeding what is necessary for their services.