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