Many people argue that chief executive officers (CEO) in big corporations must earn a considerably higher salary than other workers. While I believe that this statement is true, people should consider that paying the CEO higher is not always an effective decision for some reasons.
To begin with, the CEOs can receive higher salaries if they perform well in driving success for the company. The earnings they receive might be perceived as appreciation for their enterprising skills to make the organizations successful and the responsibilities they carry on. In fact, the amount of salary is also one of the considerations if someone will take the responsibilities or not. For example, if companies do not pay a competitive salary for professionals, they might lose interest in doing the job which moves them to find other companies who can pay them reasonably.
Despite the responsibilities they have, providing higher earnings for CEOs will not always bring significant impact for the companies. Corporations consist of several structures that contribute to success. There are many people who are industrious inside the business and drive success by presenting the most insightful analysis, resulting in a large amount of revenue. It means that the success the corporation gains does not merely come from the CEOs which makes them receive more money than others. In reality, there are some leaders who exploit workers to do jobs outside their job descriptions and they will claim success towards those achievements. Therefore, the earnings should be based on merit, not only from the position.
In conclusion, although raising salaries for CEOs recognized as respecting their hard work, management might also pay attention to their performance to bring massive impacts for the companies. Therefore, the payment should be in line with their accomplishments.