CEO Are CEO Overpaid?
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. …show more content…
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