Is It Ethical For Ceos To Be Paid Essay

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Assignment Unit 3 -Is it ethical for CEOs to be paid so much more than other employees? Yes it can be ethical for CEOs to be paid so much more than other employees as long as the company’s salary scheme has been discussed and approved by stakeholders, ethical accounting practices is used and make ethical decisions using audited financial measures including earnings when computing Compensations to top executives. The big companies need talented CEOs to get them sometime you need to attract them with a big salary, therefore it is up to Board of Directors and Stakeholders to look at what CEO is bringing at the company as net profit and judge if the salary is excessive or not. Of course we all know that it is a collective effort of great CEOs …show more content…

This practice doesn’t use a valid reward distribution system because a valid system uses a kind of survey through a Satisfaction questionnaire filled by all staff, so when there is a big gap in the salaries between CEOs and other employees the management intends to hide compensation for Executives. Companies have to make a business decision on how they will reward their executives Should companies be considering ways to reduce the gap to improve the overall moral of their employees? Yes companies should consider ways to reduce the gap to improve the overall moral of their employees because all of them play a role in the success and effectiveness of the company even if CEOs are more responsible for the success of the company. A valid reward distribution system and Performance-Based Reward Distribution Method should be applied. Because reward distribution systems have major effect on the ability of organization for employing, generating and maintaining motivation in potential employees and consider as the main reason of access to great

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