3. Self dealings and consumption of perks. Consider a privately held company whose CEO owns less than 100% of the company. If the other owners are not involved in the day-to-day operations of the company, then the owner-manager has many opportunities for various types of legal but unethical self-dealings, including the payment of high salaries, nepotism, personal transactions with the business (such as a leasing arrangement, and not truly-necessary fringe benefits. Observe that the owner-manager receives the full benefit of these perks but that the costs are partially born by the other owners. (Of course, if a company is wholly owned, then there is no ethical violation because the owner is also bearing the full cost of the perks.) Such self-dealings are much harder to arrange if a company is publicly owned.