ceo overpaid?

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CEO overpaid?
The salary between top CEOs and their employees continue to rise as the country’s economic growth fluctuates. There is a need for regulation of compensating executives to reduce this disparity. The median compensation for the 200 top paid executives was $17.5 million per year. The CEOs also received an average pay rise of 14% from 2016.
In my own opinion, paying executives is vital for the overall performance of the company. It is the best way of encouraging CEOs to perform at their best level and compete with other companies. Additionally, this adds more return to shareholder’s investment in a company.
High compensation to CEOs also enables the company to attract top executives in the country who are capable of implementing an organization’s strategic goals. It is also essential in retaining them for an extended period (Gelles para. 4). Most of these CEOs are highly qualified and with diversified experience across different fields. These executives are highly demanded due to their ability to run multinational companies.
Unfortunately, the high differences between executive’s salaries and their employees may become a challenge (Gelles para. 6). Employees are directly involved in the production of goods and services, and when the salary’s gap is wide, they may feel demotivated. Most employees feel that their managers only sit down and wait for results. Employees also feel that the Company does not appreciate their effort. As a result, a conflict between executives and employees may happen which may lower the company’s profit.

Both the CEOs and their employees are essential to the overall success of the company. They depend on each other for the company to achieve its objectives. Executives have to implement the shareholder’s goals while the roles of employees are to make sure that goods and services are produced. The salary gap should, therefore, be reduced to ensure mutual respect for both of them.

Work Cited
“Gelles, David.” Six C.E.O. Pay Packages That Explain Soaring Executive Compensation. New York Times 25th May 2018. Online. < https://www.nytimes.com/2018/05/25/business/top-ceo-pay-packages.html> [Accessed on 3rd June 2018]