Are CEO salary levels appropriate in comparison to compensation received by other employees? Why or why not?

 

The CEO's compensation aims to reduce agency conflicts since the leaders will not pursue their interests at the firm's productivity and performance costs. The higher the firm's success, the more the CEO's pay.

It is a technique employed by shareholders to share a firm's performance benefits with its top leadership. The CEO's are mandated with the most responsibilities of the firm. They are mandated to ensure a firm's success and increase their performance.

 The increase in performance is achieved by ensuring operational efficiency in all sectors of production within a firm. Their decisions impact the overall progress of the firm.