Question

There has been a lot of criticism of CEO and top management salaries and perquisites. Many believe the compensation of CEO's and other top managers in major companies is excessive. Comment on the theory of narcissism impacting CEO compensation.

Answer 1

There is no doubt in the fact that many-a-times it is observed in many companies that top management such as CEO etc. gets hugely paid which are way above par than the industry standard and also based on the experience and education of that CEO the salary is way too high and it directly affects the cost of the company and is included in the expenditure of the organization.

Theory of narcissism clearly states that an individual getting much more attention than required and excessive biasing. When the salary of CEO is so high, he/she would start considering him or her as superior to others which is not good for a healthy environment of the office. Sometimes exploitation of other employees are also witnessed because of this and hence the CEO level employees should be paid as per their experience and with par with the industry.