Large companies should pay higher salaries to CEOs and executives compared to other workers. To what extent do you agree or disagree?

There is a widespread opinion that large corporations should provide

executives

with a higher compensation

level

in comparison to ordinary employees. I do completely agree with

this

statement and I believe that a

level

of salary should reflect the essence of work, complexity of duties, and specialist's experience.

First

of all, it is a definitely misleading task to compare levels of compensation of senior managers and other white-collar workers because of the difference in the everyday tasks, duties, and roles.

Executives

are primarily hired to manage the

company

, secure growth, and other challenges at the strategic

level

, while the ordinary employees are working force and in charge of immediate implementation of the

executives

' strategic vision and mission of the

company

.

As a result

, a CEO and an analyst face completely diametrically opposite tasks and levels of responsibility.

For example

, an analyst has the right to make a mistake during his or her learning process, while the managing director's mistake could lead the

company

to lose its market share or competitive advantage.

Secondly

, people usually hired to be the

executives

probably have already got extensive experience and become world-class specialists in their field.

Moreover

, a leading position in the

company

just requires a senior manager to be aware of the area where the

company

carries out operations.

As a result

, a high compensation

level

just reflects the market price for that sort of professionals.

Finally

, from the shareholders'

viewpoint

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,viewpoint

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it is more productive to hire and treat a CEO in the way he or she will be more willing to increase wealth and add value.

Moreover

, the agent-principal problem from corporate finance theory provides insight that how well a

company

will operate profoundly depends on the CEO and their desire to be compatible with owners' interests.

For instance

, shareholders are interested in providing a competitive

level

of remuneration to the

executives

to secure that managers will work in the course of the creation of value and wealth improvement. In conclusion, it could seem rather unfair that

executives

' salaries sometimes reach figures that are four to five times higher than ordinary employees', but at closer look considering how much pressure and responsibility they bear large wages and much larger bonuses seem to be a fair price.