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Why Ceos Should Be Paid Essay

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Is it ethical for CEOs to be paid so much more than other employees? This answer to the above question will be No, it’s not ethical. It is known that the CEO (a strategic decision making role) has the responsibility to define business and leading a team in accomplishing its goals. He might be the reason the company is doing well (bringing value) and employee still have their job under his/her leadership but like Cherrington (2009) said, “most of the time, there are many other leaders who have the potential to step into the position and do just as well or better than the CEOs” (P.7). In today’s business word, there is a notion that if the CEOs are not paid much more, their commitment can be easily influenced as their decisions can make or mar …show more content…

In addition, institute an executive Salary cap so as to keep the gap from growing wider. This will show employees at every level that the organization values and cares about them, thereby bringing about job satisfaction for the employees. • Secondly, organizations should be transparent about the salaries, showing the salaries of all employees in the company and what formula was used to determine those salaries. With this kind of transparency, employees get to see the possibility for growth within the company. The numbers and formula open door for employees to have meaningful conversations about what they need to do to increase their salaries. With a clear idea of how to boost their salary and position, employees are motivated to do so” (Huhman, 2015). In addition, when organization offers employees the opportunities to progress upward and relay what they need to do to achieve upward mobility and

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For Rich’s decision to be successful, salary and hourly employees need to “trust their leader and feel they will be treated fairly and honestly” (Griffith and Gould 2008). Because the situation and impending decision impact the employees in different ways, he should consult the hourly and salaried employees face to face, but in separate settings. Rich should consult with the salaried employees first to gain insight on his decision. Their reactions will help Rich solidify his decision, then he will continue the consulting approach to share this information with his hourly

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Justin Liberatore November 11, 2014 Ms. Stoneking English 111 My Issue: Are CEOs paid too much money? Overview of debate: It is historically known that many CEOs are grossly overpaid for typically doing far less work than most people think. CEOs act as company figureheads. They are often depicted sitting in big black leather chairs at the head of boardroom tables, or in oversized offices with multiple assistants running amuck doing work the CEOs were hired to do.

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