According to a Social Security report, the national average wage was $48,098 in 2014 (Social Security, n.d.). The average American earns less than 1% of a CEO. An article by Shana Lynch, explains that Americans “thought CEOs earned nearly $1 million, whereas the real average is about $10 million” (Lynch, 2016). The debate over CEO compensation has been widely discussed in terms of ethics and if a CEO is overpaid. CEO’s can be compensated for their work by a salary, bonuses, and stock options. I believe that a CEO is overcompensated in the type of income they receive. It is unethical in many ways in that it affects consumers, employees, and stockholders alike. This paper will provide an enlightened view on CEO income and how much is too much. Ethically Compensated …show more content…
An ex-ample is the McKesson pharmaceutical company, which is located throughout the United States. It provides a vast number of medications throughout North America (McKesson Corporation, 2017). The CEO of McKesson, John Hammergren, receives an income of over $131 million (Forbes, 2017). If McKesson pharmaceutical company paid Mr. Hammergren only $31 million then undoubtedly lives could be saved by offsetting the high costs of medications. Mr. Hammergren is the highest ranking executive and has the responsibility of making im-pactful decisions that have a long lasting impact to the company and consumers. It would be reasonable that he earns the most due to his vast responsibilities and duties. However, due to his influence to his company, I believe his income should be a direct correlation to company