Throughout this week, we have explored the issue that is executive pay. It has been interesting to analyze all sides of this controversial subject. Personally, I believe executive pay in itself is an appropriate system, however I think it has been extremely stretched past its original intent. Over the last few decades, the difference between executive pay and regular pay has become shockingly large. As we heard in the video, “The CEO is payed so much more than the average worker, they have no idea how the other 99.99% of the world lives.”
Some claim that in order for society to continue to work hard, be motivated, and create jobs, there needs to be one or two people making outlandish amounts of money. While this makes sense, those below the CEO and top executives may argue that they simply aren’t given the same options to increase their profits like they do, primarily through stock options.
By placing a cap on executive pay that will begin to decrease the large disparity, many people will be extremely unhappy. Top executives are confident that they are taking on extreme responsibility in leading an entire company, and deserve that compensation. However, doing this may allow lower level positions to take more risks and climb up the ladder in a different way.
Overall, the topic of executive pay has many factors and opposing sides. I believe that although it is a traditional way of rewarding those who have worked extremely hard, there should be more structure put in place to even out the playing field even slightly.
