Please rate my AWA Issue - Corporate Executives

[bravotalks]

Prompt: "Some have argued that the salaries of corporate executives should be linked to those of their lowest-paid employees. This, they argue, will improve relations between management and workers, reducing costly labor disputes and increasing worker productivity. What these people overlook, however, is that these high salaries are necessary to attract the best managers, the individuals whose decisions have the greatest impact on the overall well-being of the company."
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The salaries of corporate executives should not be linked to those of their lower-paid employees. In my opinion, such a link will not improve the relations between management and workers, or reduce costly labor disputes and increase worker productivity. On the other hand, I believe, linking the salaries of corporate executives to say the earnings of the company or the share value of the company would have tremendous benefits.

The first reason for my view is from the fact that a lowest-paid employee may not actually contribute to the productivity. For instance, the lowest-paid employee of a company may be a janitor, who might not necessarily contribute to the productivity of the company. If so, then linking the salary of a corporate executive linked to those of the janitor position will definitely not improve the relations between management and workers, or increase worker productivity.

Another reason stems from the competition and motivation. If a salary of a corporate executive is based on those of their lowest-paid employees, then the corporate executive has no motivation to improve the productivity of the company. The primary reason is that the increment in productivity is not going to benefit or improve his compensation. Also, he more likely to join another firm or look for a better position.

On the other hand, if the salary of a corporate executive is linked to the earnings of the company or the share value of the company, then that corporate executive is more like to have a commitment in improving the productive of the company. He is also more likely to improve relations between management and workers, reduce costly labor disputes in a timely fashion and increase worker productivity. On the same token, he is also more likely to solve any issues faced by the company so that best earnings are obtained, and thus get benefit in his compensation.

In conclusion, linking the salaries of the corporate executives to those of the lowest-paid employees will not improve the productivity of the labor or productivity of the company. Actually such a link might detriment those productivity that is intended to be improved. On the other hand, linking the salaries of the corporate executives on the earnings or the share value of the company is more likely to improve the productivity of the workers and the company.