Many workers and consumers distrust CEOs (in part due to recent scandals like at Enron) and believe that they are overpaid. Many look at it as a moral issue saying that you cannot justify paying millions to one person when so many people are working for minimum wage and in poverty.
Sensational headlines add fuel to the fire. In Canada, there was a report published in most of the daily newspapers saying that by 10 am on January 2nd, the 100 top paid CEOs in Canada have already earned more than what the average Canadian makes in an entire year. A few more facts on this story: The average income of the 100 top paid CEOs in Canada is $9 million per year. The income of the average Canadian worker is $38,000 per year. Look at it this way – By the end of the fourth day of each year, these CEOs make more than twice what the average person makes in the entire year!
Stories like this are sensational. Sensationalism hurts reputations. Nothing was published about whether these CEOs earn their keep or how anybody would go about measuring their worth. Sure, some of these people are probably overpaid. But some are not. Some of these CEOs, I'm sure, risked everything to start the companies that they now preside over. They risked a lot. They now enjoy the rewards that come with success. Not to mention, many of these CEOs are probably responsible for the creation of many jobs.
In the end, nothing is really told except a headline saying that CEOs make a lot of money - Headlines written in a method to grab people’s attention and sell newspapers. There is more to sensational headlines than meets the eye. The unsuspecting public naturally comes to the conclusion that these CEOs are overpaid and immoral. In most cases, I don’t think that’s true.
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