Question

I have always been a firm believer in the saying "it's all about who you know." In the business world especially, this statement is proved true more times than not. An argument for why CEOs get paid too much is the inconsistency of compensation. "...it is reasonable to assume that the people who become CEOs because corporations offer $8 million per year, on average, more talented than the people who would become CEOs if corporations offered $1 million per year. But there are two reasons to think that they are not that much more talented, and so not worth the extra pay." I do agree with the argument that the CEO making $8 million a year isn't always more talented than a CEO making $1 million a year, but the CEO that is making $8 million had to go through the work to get that job. Whether they knew someone that got them into a very good position in order to acquire the job or not doesn't matter. There a lot of very bright people who are not making as much money as someone who is not as bright as them, even in the same line of work. People get much different opportunities to succeed than others. There is a stat that states a CEO on average makes 301 times the amount of a factory worker for that same company; I do believe that the CEO is not doing 301 times the amount of work as the factory worker nor that the CEO is actually working for all of that money; however, they still worked hard enough to get themselves into that position. So with me stating that I would say that no, CEOs are not making too much money. Their job is very important, and I would assume that along with that large compensation comes with much stress and timely work. Have any of you ever had a job where you were doing the same amount and kind of work as someone but making a significant less amount of money? Are you doing things now that will set you up for success or failure in the future?

Would like a detailed response to this

Answer 1

soln.:

the term wages or remuneration is meant to the factor payment made to the doer or work for his services or efforts. wage is the function of marginal physical productivity of a person, where as in the context of CEOs one cannot argue upon the remuneration of him which is obvoiously not equivalant to his physical production of services for the company, he could not be access in the same way as the labour of the factory accessed. CEO's contribution is of intangible nature. His efforts couldn't be measured in cardinal.

now lets discuss the matter how he get the job and the oppertunity from where he got $8 million where as an another CEO got merely $1 million so its his own caliber and ability to grasp the oppertunity in this world none of two person got equal oppertunities in life to grow, one always has some extra edge with respect to another. there is an old saying 'First come, first served', it reffers to that many a times oppertunities came by luck and to the particular person who hold certain position position, their no matter how much a person is bright in his skills.

And the position of CEO is having a lot of responsiblity with it everything performs in the company is conduct in the name of CEO, there fore he is having all the responsiblity and he got the handsome perks against burged of stress he took for the efficient working of the firm, His performance being a CEO is always countable so as he has to do all of his best to be remain on the post.

Great positions comes with great responsiblities and there is no job where one get more than he does... but yes that true at some position one may enjoy his position but thats the reward he got against all his efforts to reach at such a position.