There is a view that companies pay significantly more to CEOs and executives than other workers. I completely disagree with this idea, as it leads to undermine employees motivation or even reduce productivity.
One reason is that why companies paid more for executives, rather than for ordinary workers. Large companies consider about losing their good staff. When they see income inequality, it leads to feel resentment. While executives earn more even other ordinary workers tend to do managers works. As a result if they don’t work hard as every collegues do they don’t merit-based pay. Moreover, there will be appeare wage gap between co-workers and executives, that’s leads to retention rate expanding. A case in point is companies should pay equally for individuals and generate productivity and morale between workers.
Another reason is that workers can get rewards for their productivity and responsibility. Take compensation packages, for example. When employees work daily and try to outdo other co-workers in the office. They will have compensation packages such as housing or traveling, which will motivate workers. Furthemore, this can reduce retention rate. When workers satisfied from their jobs and salaries, there will be no reason to discover another one.
In conclusion, I strongly believe that companies should generate income equality that contribute to productivity and job satisfaction between workers, rather than concentrating only on excecutives.