As the wages of directors in large organisations are significantly higher than those of ordinary employees, there is an ongoing debate as to whether such pay disparities are necessary or unfair. This essay will discuss both views; however, even though this disparity may appear unfair at first glance, I believe that directors should be paid more than ordinary employees.
Critics of paying high remuneration to directors cite unfairness as the main reason for their stance. Were executives to earn vastly more than frontline staff who contribute directly to day-to-day operations, employees may feel undervalued and disengaged. This perception of inequality, in turn, can weaken morale, undermine teamwork, and gradually erode employees’ loyalty to the organisation. In extreme cases, resentment towards management may develop, leading workers to limit their efforts to minimum requirements rather than actively supporting organisational goals.
Despite these concerns, others, including myself, share the belief that directors warrant higher pay due to the significance of their responsibilities in the workplace. Unlike ordinary employees, they are accountable for strategic decisions that shape a company’s long-term direction, financial stability, and even survival. For example, a chief executive’s decision to expand into new markets or restructure operations can determine whether a business thrives or collapses. Given the intense pressure, advanced expertise, and leadership required in such roles, competitive salaries are essential to attract and retain individuals capable of guiding companies through complex and volatile business environments.
In conclusion, although large pay gaps may raise legitimate concerns about fairness, I contend that senior managers should earn more than other employees due to the weight of their responsibilities and the profound impact of their decisions.