The Executive Compensation Controversy

The Executive Compensation Controversy

One of a biggest controversy in my field, the field of business, is on executive compensation. This issue is mainly about the large difference in compensations to executive positions and common workers. To look at this issue in the superficial way, when the office position is high and executive, such as the manager position and the CEO position, it is natural for them to receive more salary and more compensations than the common workers in the company. However, there are more aspects to this issue, which creates a controversy in the field. The two counterparts on this issue each support one of the two sides, supporting high compensations for executive positions or disagree with exceptionally high compensations for executive positions.

            The facts about executive compensation are important for understanding this issue.  “According to the business news magazine The Economist, the CEOs of the 350 largest U.S. corporations earn about 231 times more pay than the average worker. In other words, for every dollar an average worker made, these CEOs made $231” (Grimsley). Also, “compensation for U.S. executives is often much higher than their counterparts overseas” (Grimsley). These facts are what aroused the controversy.

            People who advocates for the reasonability of higher compensations for executive positions have a couple of arguments. Firstly, these people say that the common price in the human resources market decides the pay for executive offices. Secondly, executive positions, such as managing partners, CEOs, CFOs, have talents that are different than the common workers, so they have the right to higher compensations. Also, high compensation for executive positions is justifiable by its higher risks of getting fired. The above is the main reasons why people support high compensations for executive offices. People who believe in high compensations for managing offices is looking at the whole picture of all employees, and they want to keep the balance for all employees and all people in the working force.

            
Other People disagree with the drastic difference in the amount of compensations for executive offices and common workers and argue against high compensations for executive managers. These people argue that high compensations are given to the executive managers even when their performances at their jobs are poor. Also, these people believe that allotting so much company money to compensating executive managers is unjust and unwise. These people are looking out for the interest of common working class, and they are trying limit all situation where it can cause unfair standards and unjust treatments in workplaces.

            Both parties in this the executive compensation controversy has their reasons and their arguments. However, this issue is yet unsolved and still bothers the mind of many.

 riki chen

Work Cited

Grimsley, Shawn. “Controversial Employee-Management Issues.” Study.com, Study.com, study.com/academy/lesson/controversial-employee-management-issues.html.