In recent years, there has been a widespread debate on the topic of prominent brands’ managers earning much higher salaries than their regular workers. While some people believe that this financial imbalance might result in unavoidable inequality in working environments and mass demotivation of general employees, others have come to argue that it is quite fair because of directors’ inevitable responsibility and essential skills in running a specific company, and I largely agree with the latter perspective.
On the one hand, the wage gap between directors and standard employees in the workplace can be a primary cause for financial inequality. This approach would encourage working staff to prioritize individual competitiveness to earn substantial amount of money over cooperation with colleagues. This trend might lead to lower productivity as the future prosperity of many enormous companies relies heavily on the collective efforts of staff, such as public relations or customer service. Moreover, that gap between two working groups can cause widespread demotivation among regular employees, potentially forcing them to leave the company seeking better job satisfaction in other teams. Ultimately, CEOs might even lose skilled professionals by not offering them enough salary.
On the other hand, most managers in multinational companies’ are responsible to take essential daily decisions. They are obliged to make the right decision to ensure the company’s long-term success in today’s competitive market in any sphere. Furthermore, they completed extremely demanding academic and career tasks in order to reach their positions. Moreover, they provide millions of people with suitable jobs, allowing them to take care of their families. For instance, only a small percentage of the total net worth of the richest person of in the modern world, Elon Musk, is actual cash, as the majority of his wealth consists of multinational companies that hire millions of people worldwide. This argument highlights directors’ pivotal role in any organization, thereby justifying their high income.
In conclusion, while there are some moral and ethical arguments in favour of financial equity between people of different working backgrounds, I firmly believe that those explanations should not undervalue the key role of directors due to their ultimate responsibility and pressure they face throughout their career.