Question

You are the CEO of a large business. You have completed a college undergraduate and graduate level degree. Also, you have worked hard and have developed specialized skills in leading companies to profitability and growth.

You are being interviewed by the board of directors at another company who have asked you what level of compensation and benefits would you think are fair compensation for you. The average workers at both companies receive pay of $25,000, and top managers make $125,000 annually, with bonus.

How much more do you think you deserve than those workers you will be leading? How would you justify your pay range?

Answer 1

I believe the pay range as a CEO should be two to three times the salary of top managers. So, it should be in range of 250,000$ to 375,000$ annually. The pay is justified as role of CEO is pivotal in organizational success. All the strategies and targets for the organization are driven by CEO along with shareholders. The CEO ensures the future course of action of organization and sets up platform for coming leaders in the organization. If the CEO is not strong enough, it can spoil the entire growth trajectory of an organization and lead to collapse due to poor decision making. So, the high pay of CEO is justified due to much higher responsibilities.