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Why Is It Ethical For Ceos To Be Paid More Than Other Employees

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Excessive Pay Gap will spoil the Ethics
1. Is it ethical for CEOs to be paid so much more than other employees?
It is common that the CEO of the company being paid more than his employees. Especially, in the case of CEO is the founder of the business, it is nothing against the nature of capitalism to earn more than employee. From the aspects that the reward to be paid against the amount of responsibility, it could justify the gap as well. Recently, the skyrocketing CEO pay has begun to be criticized because the pay should be tied to the company’s profit basically. According to Melin (2018), “The gap between pay for U.S. chief executive officers and the people who work for them has widened six-fold in three decades”. Most of the case, it simply …show more content…

Do you think CEO and upper management salaries are subject to ethical consideration?
I think, as it is mentioned for the previous queries, the salaries of CEO and upper management are subject to ethical consideration to maintain the organization healthy status. If the overall motivation could be maintained by reviewing the executive’s salaries, it is good deal from a long term perspective because it does not cost any extra. As a consequence, it will profit executives, employee and whole organization after all.
Reference
Mackey, J. (2009, 6 17). Why sky-High CEO Pay is Bad Business. Retrieved from Harvard Business Review: https://hbr.org/2009/06/why-high-ceo-pay-is-bad-business
Melin, A. (2018, 1 23). Executive Pay. Retrieved from Bloomberg: https://www.bloomberg.com/quicktake/executive-pay
Umoh, R. (2018, 1 22). CEOs make $15.6 million on average—here’s how much their pay has increased compared to yours over the year. Retrieved from CNBC: https://www.cnbc.com/2018/01/22/heres-how-much-ceo-pay-has-increased-compared-to-yours-over-the-years.html
Treviño, L. (2005). The role of leaders in influencing unethical behavior in the workplace. In R. Kidwell, & C. Martin (Eds.), Managing organizational deviance. (pp. 69-97). Thousand Oaks, CA: SAGE Publications, Inc. Retrieved

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