Some individuals think that big enterprises should give much higher salaries to their c-level officers than the other employees. In my opinion, this is the right decision because of some 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 pandemic strikes the bus company due to transport restriction, it results to much less income, but the CEOs have to make the best decision to still pay the whole hundred staffs and run their business, while the staffs just think about themselves.
Furthermore, the higher salary is able to give loyalty to their CEOs and prevent them to do fraud. The c-level officers 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.
All in all, large companies should pay their top managers significantly higher than their other staffs because of their responsibility and loyalty. I think it is a very understandable policy as long as the salary to their workers is based on minimum wages regulation and balance to their job tasks.