Executive Officer Chief Executive Officers

1692 Words Mar 25th, 2016 7 Pages
Chief Executive Officers (which will be referred to as CEOs for the remainder of this paper) is arguably the most prestigious position an individual can hold in the business world. There is no disputing the high level of responsibility necessary to manage the operations and resources of any company, while also being the key figure between the company’s board of directors and the stakeholders which are effected as a result of the company’s actions. Despite the high level of responsibility, it is worth asking a question that has been up for debate not just in recent years, but for the past several decades, which is whether or not CEO compensation can be justified? Just to put into perspective how much one of Canada’s highest-paid CEOs makes, we can look at the amount of the 100 highest-paid CEOs in 2014. Each of these executives will have earned an average worker’s salary by about noon on January 2nd, the first work day of the year, with New Year’s Day being a paid holiday at that. This amounts to an average salary of $8.96 million for the top 100 CEOs, as opposed to the $48,636 the average Canadian made in 2014 (Freeman). What is astonishing about this high salary is that if we look back to 1978 and compare the compensation of CEOs and average employees over that time span, inflation adjusted, the CEOs compensation has increased 937%, compared to the typical worker’s which rose a measly 10.2% over the same period (Davis, Mishel). Clearly this increase in compensation for CEOs…
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