Executive Salaries: Do they deserve their salary?

Essay by cavepilotUniversity, Bachelor'sA+, October 2005

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It is a well known fact that many people holding high positions in companies make an

exorbitant amount of money. Some, however, say that they do not deserve the amount that they are paid. They feel that for the amount of work that is done by these executives, their paycheck is simply too high. Also, they believe that these high paid workers often do a mediocre job, while still managing to reap the benefits of being an executive. While these are viable arguments against this issue, the other side of the spectrum shows that this is not so. There is an equal amount of evidence, if not more, that suggests that executives earn every penny of their paychecks.

The CEOs of companies are under an extraordinary amount of pressure. They face the

task of making sure that a company pulls in a profit, or possibly losing their job. There are few, if any other positions that put an employee in this situation.

Important decisions are made by them everyday, many of which decide whether a company will prosper, or go under. Many of these people had to work their way to the top. They usually have extensive business backgrounds, and know their field well. There are very few people qualified, or knowledgeable enough to perform well in executive positions. That makes the ones that are, a hot commodity. Thus allowing them to demand the high pay that they earn.

When the public sees a salary that they consider to be too big, they are usually looking at

only half of the picture. It is impossible to look at just the salary, without taking any other factors into consideration. One must look at the amount of earnings, compared to the profits of the company.

Most jobs are clear-cut. A person has...