There is considerable debate about whether the disparity in income between
directors
and other employees is fair or not. I firmly believe that the higher incomes of leaders are deserved.
It is undoubted that the ordinary salaries of each position are a result of the dynamics and competition of the recruitment market. Many companies want to recruit talented managers, who possess unique skills, experience, and strategic vision, to lead business activities.
Hence
, companies must offer competitive compensation to attract and sustain the loyalty of top executive talents because they believe these talented operators could promote the financial landscape of their corporations.
Additionally
, it is admitted that the role of chief executive officers is crucial in the operation of a business. Managers have the right to make critical decisions in their organizations and are responsible for those decisions. Meanwhile, managers are assigned target performance and due dates for each project, all of which have been nominated by their employers.
Therefore
, corporations use financial outcomes as indicators to adjust their employees’ incomes.
Consequently
, the higher incomes of operators reflect the magnitude of their responsibilities and their decision-making performance in terms of finance and punctuality.
For instance
, Tim Cook received extraordinary earnings based on his contributions to the success of Apple, which is a strategy many firms use to prevent top executives from moving to rival firms.
However
, it is overstated to attribute the success of an organization solely to its leaders, undervaluing the collective effort of the entire workforce. Corporations thrive
due to
the innovation and hard work of their entire teams, not solely because of their executives.
Moreover
, the vast salary disparity between
directors
and ordinary staff exacerbates economic inequality and can lead to resentment and low morale among the workforce.
For example
, many companies continue to pay high executive bonuses
while
laying off employees or cutting their pay, fostering dissent and undermining team cohesion among leaders and workers in workplaces.
To conclude
,
while
the high salaries of
directors
can be justified by their unique skills, experience, and the significant responsibilities they bear, it is essential to recognize the contributions of the entire workforce. Organizations should strive to balance compensation in a way that acknowledges both the leadership of
directors
and the collective efforts of all employees. Reducing excessive income disparity can help foster a more cohesive, motivated, and equitable work environment, ultimately contributing to the long-term success and sustainability of the organization.