Question

Compensation between the CEO and their employees. What are three ethical reasons why they SHOULDN'T be compensated significantly more.

Answer 1

Below are the three ethical reasons why the employees shouldn't be compensated significantly more:

1. The compensation levels are based on the industry standards and the compensation for any particular profile across industry is analysed properly and then the compensation levels are decided which are average industry levels of compensation for that profile.

2. The employees are compensated in accordance with their skillsets and knowledge level plus their experience for that profile. It is unethical to compensate any employee higher than other employees if he does not have sufficient expertise and skillsets for that particular profile.

3. The compensation levels are based on the complexity of job and varies in accordance with the criticality of role and job description. If the job requires significant involvement and is highly complex, then more compensation is provided as compared to the job which is less complex.