It is believed that chief executive officers ought to be paid significantly higher salaries by large companies nowadays. As far as I am concerned, I do partly agree with the statement for several reasons which will be analyzed in this essay.
On the one hand, CEOs play a critical role in the growth and development of a company, often gaining undeniable benefits. Firstly, it is obvious that the extensive practical experiences acquired by CEOs over the years equip them with a high level of sensitivity and adaptability in their decision-making. This is a result of the years spent gaining valuable knowledge, as well as practical knowledge, that they collect in the working environment. Secondly, CEOs are invariably faced with pressure when managing a large amount of work. Therefore, providing them with a suitable salary can increase their motivation in the working process. Finally, no one can deny that with higher positions come greater responsibilities; CEOs must be good at diverse aspects such as financial management. Hence, offering a high salary is a recognition of CEOs.
On the other hand, there are compelling arguments against the viewpoint of high salaries for CEOs or presidents. Firstly, it can be proven that such practices may lead to feelings of unfairness in employees. This can lead to a propensity to minimize the productivity of company. Last but not least, allocating salary to CEOs can have a bad effect on the company’s budget due to the large amount of money that the company has to pay for CEOs.
Taking everything into consideration, from the mentions above, it is necessary to pay a significantly higher salary to CEOs, but it is also necessary to consider the salaries of other employees to ensure balance and fairness for all members of the company. In addition, companies should offer high salaries for excellent employees based on their contribution and achievements before making final decisions.