Such a limit on the compensation executives can receive is an example of a price ceiling.
Explanation:
A price cap is a price restriction or limit legislated by the ruling government or organization on how much a price is paid for a good, resource, or service. Governments are using price limits to safeguard customers from circumstances that might make goods impractically costly.Price caps and demand floors are fostering market equity. Price levels like minimum wage help customers by making sure compensation is fair. Price caps such as rental regulation favor buyers by prohibiting sellers from overpaying that will ensure viable, afforadle residences in the long term.
