Large companies should pay higher salaries to CEOs

Large companies should pay higher salaries to CEOs and executives compared to other workers. To what extent do you agree or disagree?

Model Solution

The issue of executive pay has been a subject of debate for many years, with some people arguing that CEOs and executives should receive higher salaries than other workers due to the level of responsibility they hold, while others believe that it is unfair and creates income inequality.

On the one hand, those who argue for higher CEO pay contend that executives have unique skills, experience, and knowledge that are essential to running a successful business. CEOs are responsible for making important decisions that can impact not only the company but also the broader economy, and their pay should reflect their contributions to the success of the company. In addition, offering high salaries to CEOs and executives can incentivize them to work harder and make better decisions, leading to greater overall success for the company.

On the other hand, critics of high executive pay argue that it creates income inequality and is unfair to other workers. Many workers in large companies, such as factory workers or customer service representatives, are essential to the company’s success and contribute just as much as executives, yet they are paid significantly less. Moreover, excessively high executive pay can lead to a focus on short-term profits rather than long-term sustainability, which can ultimately harm the company and its employees.

In my opinion, while CEOs and executives should be paid well for their contributions to the company, there should be a limit to how much they can earn. Companies should strive for greater income equality and ensure that all employees are fairly compensated for their work. Additionally, companies should prioritise long-term sustainability over short-term profits to ensure their success in the long run.