In the high amount of money for a

In the course of recent years, the compensation hone
for corporate CEOs has for some time involved discussion, particularly as of
late, as the wages of normal laborers have stagnated and monetary imbalance has
moved to the focal point of the national verbal confrontation (Holmberg &
Schmitt, 2014). According to American and CEO Pay by The Rock Centre for
Corporate Governance at Stanford University in 2016, 74% of American believe
that CEOs are not paid the correct amount relative to the average worker.

Because a company’s pay structure is well thought out, CEO have more
responsibility than other workers, and CEOs spend more time working than
average workers, I believe that CEOs are worth the high pay.

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Firstly, some companies are willing to pay their CEO
with the high amount of money for a designated purpose. CEO compensation is a
serious problem, but high pay is not the main issue. The public and media pay
more attention to the amount of CEOs are paid rather comprehend the real
problem—how CEOs are paid (Jensen & Murphy, 1990). In general, CEO’s
pay comes from base salary and stock options. The amount of money they will get
depends on their performance. At that point, if a CEO gets a large payment, it
is likely that the company is successful. Then, why most companies establish
this payment strategy? Because they want to attract, retain, and motivate their
CEO to perform at the highest level (Kay, 2006). They want something in return;
for the sake of company’s future success. Pay-for-performance is an outstanding
installment payment-system that utilized by the most organization on a
worldwide level. This payment-system can expand the viability of workers and in
the meantime motivate them to enhance their work-performance with a specific
end goal to bring profit to the company. (Rehman & Ali, 2013). Since CEOs
are the main key to determine whether and how well a company will succeed, this
supporting system is essential as it will influence their CEO performance. This
statement supported by graphic CEO Pay vs. Performance from 2010-2014 from The
Wall Street Journal in 2015, 300 top highest paid CEOs are more likely to
increase their performance and bring a positive return to the stakeholder. 

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