Some individuals think that large enterprises should give much higher salaries to their C-level executives than the other employees. In my opinion, this is the right decision because of several reasons.
To begin with, chief executive officers (CEOs) have the biggest responsibility among all of the company’s workers. Not only about managing the company’s revenue to pay operating costs, but also to mitigate their corporate risks in order not to give drawbacks to the company. For example, when the transport restriction was given to the bus company due to pandemic, it results in much less income. However, the CEOs have to make the best decision to still pay the whole hundred staff and run their business, while the staff just think about themselves.
Furthermore, the higher salary is able to give loyalty to their CEOs and prevent them from committing fraud. The C-level executives usually know more about company confidential documents that have to be kept from outside. If the top officers do not have enough income, they can resign and build another company as a competitor to their prior office, by using their knowledge that they have before. Also, with higher salaries, they are believed to not have intention to commit fraud such as manipulating business trip data to give benefits to their family. When they have sufficient income, they tend to focus on their responsibility and not do unethical fraud.
All in all, large companies should pay their top managers significantly higher than their other staff because of their responsibility and loyalty. I think it is a very understandable policy as long as the salary balance to their job tasks and other workers payroll system is based on minimum wages regulation.