ETHICAL DILEMMA

WHO IS THE CEO?

A big issue that goes on in all the big companies and establishments regards the salary of the CEO. All people involved in a business debate over the concept on how fair the salary of the CEO is. A CEO of a company in New York has a salary that varies from 87,000 dollars to 92.2 million dollars. On average a CEO makes a whopping 364 times more than the average employee in New York. Technically on one hand, in a capitalist society, there really isn't any limit to how much money a person can earn. For all establishments it is the head associates who determine all the salaries. The owners of the company are the investors, and those are the people who own shares in the company and have authority over the head associates authority.
If for any reason the shareholders don’t like what the CEO is paid, the owners can fire them simply because they don’t like what the CEO is being paid. That is only if his work says otherwise. And there are many cases in which the CEO of a company actually conceived of and founded the company: shouldn't such an individual have the right to make a salary of his or her choice? After all, some of the biggest companies in the world were started in someone's garage or home office.
Outside people are of the common of opinion that the CEO does not contribute millions of dollars worth of work. Its not fair, but we pay him or her that because the board of directors pay him this. In business a great factor in making money, is the connections and relationships made in the process. Therefore when a company’s CEO creates relationship with the right people, for example: head associates, it results in good pay. It is those head associates who determine all employee pay. Although the CEO and head associates have high authority, it’s the owners who get the last word. The owners are the investors, those are the people who own shares in the company if the share holders don’t like what the CEO is paid, they fire the directors because they don’t like what the CEO or other people are making in salary.

PROS OF A CEO

Yes the CEO does get paid a lot of money. Don’t they deserve it? They were once average workers looking to get to the top just like everyone else. In business diligence, making connections and relationships are two ways to get to the top. Look at the total amount of hours they had to put in to get there. And they continue to put many hours once at the top. It takes a lot of sacrifice from the CEO. Obviously, he is compensated for all the time he or she puts into the job. CEO's leadership is mostly strategic in understanding the “big picture” clearly and strategize the best way to achieve the company’s goals. In a 2010 study of CEOs conducted by IBM, 60 percent of respondents listed creativity as the most important quality of a CEO, followed by integrity and global thinking. Over the years the ratio of pay between ceo and other employee pay grew dramatically. I don’t think it will change any time soon. Theyre the best at what they do, if one company doesn’t give them the reasonable salary of their desire, they’ll go elsewhere.

CONS OF A CEO

All the average employees in businesses ask the same question. “why are they making so much more than me? I put more time and effort!” The middle class pay is shrinking. More money is going to less people, hurting the economy. Employees are arguing “ how many mansions, cars, and Rolex’s do they need?” The truth is that CEO’s are making 300-1000 times more than the average workers pay! And if working harder and longer meant more pay, then why are people with 3 jobs struggling to put food on their table?
In the 1950’s CEO’s only made 20 times the average worker. How can it be that in a span of 50 years that number increased to more than 10 times that? CEO’s cannot exist without their workers, but they get all of these benefits such as a massive salary, bonuses, and even umbrella clauses while the average worker gets none of these! How does this give the next generation workforce any incentive to succeed in their field of choice? The role of the CEO just proves how the rich really do get richer while the poor get poorer.