Are U.S. Executives Paid to Much? People believe that US executives are paid too much.

Are U.S. Executives Paid too Much?
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Are U.S. Executives Paid too Much?
Many people believe that US executives are paid too much. The issue of executive compensation is a pressing one given the ever-expanding income inequalities between the rich and the poor in the industrialized countries. Additionally, these concerns continue to grow due to the failure of corporate governance systems amid the economic crisis. While some people justify the compensation packages of US executives, their compensation is not only abusive but also grossly excessive and a contributing factor in the unfair distribution of wealth.
A comparison between US executive compensation and compensation for other worker groups confirms that the pay discrepancy is too much. For instance, the average annual total salary for the US executives, as reported by the Wall Street Journal, was roughly $11.4 million. There is a vast difference in pay when compared to the median annual earnings for all civilian workers at $47,230, where fast food cooks earned the least compensation at $19,480 against anesthesiologists who made the most in 2014 at $246,320 (Martocchio, 2017, p.270). Additionally, the actual pay ratios prove that CEOs are paid too much when compared to that of average workers. For example, the average annual compensation for company executives of S&P 500 companies in the United States was $12.3 million, representing about 354 times that of an average employee earning $35,000 (Kiatpongsan and Norton, 2014). The comparison in pay between ordinary workers and company executives confirms that the US CEOs are overcompensated.
The corporate performance of a company is not always the justifying reason why the US executive pay is too high when compared to that of average workers. According to Martocchio (2017), the relationship between an organization’s performance and the executives’ compensation is not always direct, and other factors are critical in making remunerations decisions. Similarly, Pepper (2019) argues that empirical evidence has failed to show a statistically significant link between CEOs' remuneration and a company’s stock price. Notably, research has confirmed that there is a substantial empirical correlation between executive pay and an organiza...