CEO Are CEO Overpaid?

1314 Words 6 Pages
When it comes to how much you get paid, everyone has an argument for or against it. A majority of people want to know how much you make, and if It’s a great sum the next question they ask is what you do for a living. Salary defines your worth to the employer and further defines what your worth to the company. Salary is a benchmark that everyone pays attention too because it can indicate how successful one person is. More often than not the CEO are considered overpaid. However, they don’t understand that CEO have multiple jobs within the company and determine how well a company does. “A CEO shoulders the large burden of having the majority of accountability when it comes to the success or failure of an organization, as one major decision can …show more content…
However, it right that CEO gets paid vast sums of money, but their payment is justified because they profoundly impact the company’s performance and at the end of the day they bring the company and the shareholders money. Therefore, CEOs are not overpaid.
One primary reason for the high compensation of CEOs is the idea behind achieving the American dream. The American dream is the idea that when coming to America people can work hard in their career so they can achieve better for their family and themselves. When people ask why CEO are overpaid, its quite simple, they work hard for that position and were rewarded with high pay due to their endless years of studying and climbing the corporate ladder. The position of chief executive officer wasn’t given to anyone; it was earned.
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It is true that some CEOs reap the benefits but do not perform enough to be justified for such a high compensation, but many do. When applying the utilitarian ethical principle, it is best that CEO were paid such a high salary because if they fail at their job and in return causes a company to fail, then many people would be out of a job and then the sole job of the CEO, to provide returns for the shareholders, would be obsolete. With the demand of highly trained and experienced professionals for the position, it is justified that the pay CEOs get

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