Employers' organizations say that in a global market this is necessary to attract the best management talent. Do you agree or disagree?
High-profile workers comprising the executive board of large companies are often scrutinized for earning far more that their subordinates. Employer’s organizations, though, claim that this earning difference is a must in order to attract the best management talent. Personally, I can see through the organization’s eye and profoundly agree with this practice.
Most CEOs of major companies in the world reportedly earn gigantic amount of money every year. Their net worth constantly ranks them among the richest and wealthiest in the world, even topped the princes and the sheikhs. Granted, some countries like Japan do put smaller gap between employer and employees, however in general the directors still earn a lot more. This causes a lot of concern in some countries, mostly regarding social gap and injustice.
Yet, considering the hierarchy of a company, directors do hold larger responsibilities than their employees. Thus, it is understandable that they get to earn more. Not to mention the fact that a director has to go a long way before standing where he or she is now; they have to start at the bottom and work their way up. To maintain this position, they also have to show no little amount of talent, perseverance and hard work. All of these qualities have to be taken into consideration and shown appreciation. Their success may inspire people, and in return, these inspirations may create more qualified people for the position.
Regarding social injustice and economical gap, it is hard to bear indeed, but it is inevitable. Basically, give more, gain more. It is an even bigger injustice to demand these directors to earn the same as their employees. Equal rights do not ensure equal wealth. People have to accept that if they want to be rich, they have to have the talent, hardwork and luck required.
Overall, I can see why the directors have to have bigger salaries than ordinary workers. Success inspire people greatly and the will to gain this success can create more talents that in return will benefit the company.