There are widely differing views on whether directors of big corporations should receive significantly more remuneration compared to regular workers, with some individuals arguing that it is a necessity while others deem it inequitable. This essay will thoroughly discuss both viewpoints before concluding that I am in favour of the former.
On the one hand, it is understandable why some claim that it is not fair for large companies to pay their managers considerably more than ordinary staff members. The key rationale here is that this pay structure fails to reflect the value each employee brings to the organisation, hence a sense of unfairness among lower-level employees. For instance, at Amazon, warehouse workers who handle and process orders for the company are vital to the company’s operations, yet they are paid significantly less than the company’s CEO, Jeff Bezos, one of the richest entrepreneurs in the world. This, as a result, has caused a feeling of inequity among these workers.
On the other hand, I side with those who believe that it is necessary for those in charge of sizable organisations to earn larger incomes than their subordinates. They argue that these individuals bear significant responsibilities and decision-making power that can make or break an organization’s ability to achieve its business objectives, and therefore their compensation should reflect this. For example, the CEO of Apple, Tim Cook, earns a high salary, a bonus, and stock options. Still, his leadership has overseen significant growth and innovation in the company, making it one of the most valuable in the world. Thus, the argument is that handsome salaries for top-level executives of large organisations are necessary to attract and retain top talent and incentivize them to work towards the company’s success.
In conclusion, although there are those who think that it is unjust when the management board of major corporations is paid substantially more money than their normal employees, I am convinced that this pay disparity is justifiable and essential for the development of these businesses.