A wise man once said, pay your people enough so that money is no longer on the table. For the startup owners who are now shifting the responsibilities to newly hired CEOs, there is no fairness or balance in distribution of wealth, or reward versus effort & contribution. This is also demonstrated in governments. Those with power will abuse it with little or no thought for others (for the most part, there are a few exceptions, RB – BG). We have statistics which shows that there are TOP Executives being paid 800 times more than their lowest paid employee. If one wishes to compete for available high-level talented executives then one must offer at or above current market norms for that position for a firm of same approximate size/value. The problem with this reality is each CEO position filled bumps that number up a bit. That is how we are at the ludicrous numbers that we see today.
How much is enough will have many different answers. There will come a time that the economy cannot grow further and that you are bounded what Mother Earth can provide for all of us. This question is not new, in fact it is there since the start of civilization. The only thing which can stop such kind of imbalances is when every individual will act as a true human being and acts ethically in true sense. If one starts thinking that what we are contributing to this society and what we are doing to stop the menace of economic and financial imbalance, such question will keep on coming every day, every year and every century.
You can never have too much money, look too good or, have too much sex. The amount of time for which these variable remain is questionable. Is not this partially handled by fixed vs variable pay. Is it appropriate to pay an officer even more than one and a half of his lowest paid team members unless he doesn’t work 150% of their time? Enough to buy a roof over the head, eat three times a day, clothes to wear 7 days a week. Anything more is just want not need. You can have enough; but you can never have too much.
Depends if the wife is high maintenance!
There has to be understandable balance between to top and the core organization. The higher you go the greater the variable pay component which is linked to bottom lines and other larger company measures ? Which means you factor in risk and the role. Why not look at the movie industry, same happens in front and behind camera. What people who make all of this money do with the money and how they may or may not help the less fortunate says more than the amount the are paid. The comparison or ratio between highest paid and lowest paid person is off base. There’s no point in comparing a Walmart cashier to the CEO. However the ratio of average manager salary to CEO is much more relevant. And quite lopsided still.
Money will never be enough for a mankind. “The more better” principle is all about us, humans. It seems the answer to the question that how much they should pay them is we will tell you when we get there. People often forget what they’re selling. Sales metrics can be measured and also the impact. All working lower in the hierarchy covet to be in the top of the pyramid to gain power and fetch fat pays. Talking how much they take is not justified to be a debate. Yeah, how much higher can lower levels be paid can be talked which again depends on various factors. Or “How many yachts do you have to jet ski from behind…?” – Famous line from the movie “Wall Street”.