It is sometimes asserted that it is beneficial if company management receive much more generous pay than ordinary employees. I largely agree with this assertion as it represents fairness and fosters productivity even though there is a risk of decreased morale.
The foremost rationale for my approval of corporate executives enjoying significantly greater earnings lies in their significance. Specifically, they generally assume various responsibilities, ranging from ensuring the overall viability of a company and training their subordinates to encouraging them to endeavour for collective success. Therefore, it can be fair for companies to pay these individuals remarkably higher than others to financially reward them for their contribution.
Another reason for why I support the idea of paying executives more generously is that it encourages other workers to be more productive. It is because the significant difference in income might be a factor that extrinsically motivates ordinary workers to work more dedicatedly and creatively to stand a higher chance of promotion. This not only allows them to increase their earning but also contributes to the company’s overall performance.
However, I acknowledge the possible negative impact of a pay gap on workers’ morale. In reality, a number of them have expressed their concerns as top executives of their firm earn a huge sum of money while those who work under their management can only be entitled to limited salaries. For example, hundreds of engineers at Google have left furious comments regarding the increasingly enormous bonuses that the CEO Suchai has received even though the tech giant is cutting down on wages and bonuses.
In conclusion, I am mostly in agreement with paying those in top management positions much higher than other workers considering managers’ contributions and encouraging their subordinates to strive for the same, boosting a company’s performance despite the possibility of an unwelcoming attitude of some employees. That is why corporations should design a transparent pay scheme and increase the effort to educate their workers on the benefits of pay differences.