Do you feel that executives are overly compensated? Explain.

Do you feel that executives are overly compensated? Explain.

Expert Solution

The debate about whether executives are paid excessively or not has been around for some time. The majority of employees would take the side that says " yes ,they are being paid too much " ,but is that the case ?

When we try to measure someone's compensation from our point of view, we take into the hard work they put in ,but at the same time ignoring other factors like vision , responsibility, knowledge, skills etc. An employee would say that no way CEOs can work 1000 times harder or more than us ,then why are they being that much times more ?

The answer is ,it is because they are doing different things at different levels which an average employee can not do. Their compensation is based on a lot of factors that are very demanding. Executives are there to ensure that company survives and grows which is not the same for employees.

So in my opinion, while some executives may be are being overly compensated, but majority are not. Take Elon musk for example ,he is one of the highest compensation getter in the world ,yet without him ,would his company been where it is now ,i.e. the most value car company in the world. Investors are happy with the result and thus agree to the compensation levels. It is an investment that some companies make ,return on which is hard to calculate, which stirs up the debate.

keosha answered 1 year ago

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