It is argued by some that directors of large companies should not be paid fat salaries as compared to everyday employees. In my opinion, these directors should be paid a handsome salary as compared to their junior counterparts. In this essay, I will highlight as to why directors of large organisations should be paid exorbitant salaries as compared to their employees.
Directors of large companies are usually seasoned professionals from the industry who have a lot of years of experience under their belt in their particular field. They are knowledgeable about various government policies pertaining to the company. They have studied business and management at top business schools across the globe and have a considerable amount of clout in the business world. To illustrate, Sir Ratan Tata, studied business at Stanford and worked with the Tata group for many years before being elected as a director of the company.
On the other hand, the day to day running of the company is carried out by the employees. They follow the directives and decisions of the board of directors. They have little or no experience in taking decisions that could have adverse effects on the profitability of the company. The employees are focussed on advancing their careers rather than advancing the growth of the company. For example, most office staff are only worried if they would receive an increment this year and are least bothered whether the company has achieved its targets or not.
To conclude, directors of companies are justified in receiving hefty pay checks as they are mature, well rounded individuals with considerable experience and business know how. Regular employees run the daily operations of the company and cannot take decisions on a national or global level. Thus, I reiterate my belief that directors of companies should be paid a greater salary than the junior employees.
It
is argued
by
some
that
directors
of large
companies
should not be
paid
fat
salaries
as compared to everyday
employees
. In my opinion, these
directors
should be
paid
a handsome
salary
as compared to their junior counterparts. In this essay, I will highlight as to why
directors
of large
organisations
should be
paid
exorbitant
salaries
as compared to their employees.
Directors of large
companies
are
usually
seasoned professionals from the industry who have
a lot of
years of experience under their belt in their particular field. They are knowledgeable about various
government
policies pertaining to the
company
. They have studied
business
and management at top
business
schools across the globe and have a considerable amount of clout in the
business
world. To illustrate, Sir
Ratan
Tata, studied
business
at Stanford and worked with the Tata group for
many
years
before
being elected
as a
director
of the
company
.
On the other hand
, the day to day running of the
company
is carried
out by the
employees
. They follow the directives and decisions of the board of
directors
. They have
little
or no experience in taking decisions that could have adverse effects on the profitability of the
company
. The
employees
are focussed
on advancing their careers
rather
than advancing the growth of the
company
.
For example
, most office staff are
only
worried if they would receive an increment this year and are least bothered whether the
company
has achieved its targets or not.
To conclude
,
directors
of
companies
are justified
in receiving hefty pay
checks
as they are mature,
well rounded
individuals with considerable experience and
business
know how. Regular
employees
run the daily operations of the
company
and cannot take decisions on a national or global level.
Thus
, I reiterate my belief that
directors
of
companies
should be
paid
a greater
salary
than the junior
employees
.