In terms of compensation, it has been hotly debated whether Chief Executive Officers or Company Presidents should earn much higher than their employees. From my perspective, I agree with this statement because high level officials such as Chief Executive Officers have more experience and responsibility for the company to do extremely well lies with them because they make the final decisions.
To start with, a look at the qualifications of any Chief Executive Officer or any other high level executive, shows that they have academic qualifications, recognition and experiences desired to hold those positions at company. They should, therefore be compensated in a manner that reflects the value they bring to their companies.
Additionally, all decisions that affect a company’s revenue and even public perception fall on the executives. For instance, since Elon Musk took over the app formerly known as Twitter, a lot of people were displeased with the decisions he made which led to a drop in stock prices and consequently, a devaluation of the company. From this example, it is evident that executives have more responsibility than other employees.
Having said this, I can see why people think employees should be paid better. Employees tend to spend a majority of their lives at one company in order to qualify for a promotion, unlike CEOs who can be brought in based on their work in other companies. Additionally, it is employees who are the driving force behind the success of a company. Without employees, the decisions made by CEOs would not be implemented.
To sum up, I do believe arguments that CEOs should not earn that much higher than their employees have merit. However, I do hold the belief that qualifications, experiences and the burden placed on CEOs should be reflected in their paychecks.