Foxs Carey Agrees to Extend Contract - Assignment Example

The CEO of 21st Century Fox is paid a salary of a little over 4 million dollars. This is in addition to being awarded stocks of $13 million (Sharma, 2014). I do not agree with this as it is simply too much pay for only one individual no matter how much the company makes in a fiscal year. The CEOs should be more highly paid than the rest of the employees simply because of their position and experience but a salary of over $4 million is simply an exaggeration.

CEOs are not the most hardworking people in a company. Their work is simply to approve and disapprove suggestions, budgets, and proposals as well as make the final decisions. The hard work is carried out by junior employees or other managers such as the human resource manager, the finance manager, and others. They then take the finished work to the CEO for approval which is in the form of a mere signature after every detail of the work is explained to them. They also just make appearances in public as the face behind the success of the company while they truly are not.

Most of these CEOs are just puppet leaders in the company and especially in those companies where there is a board of directors. The board of directors makes the final decision which the CEO then signs and disseminates to the rest of the staff. This is a clear indication of the lack of work they carry out and hence do not deserve such a large salary. Is it justified or not justified for large companies? It does not matter whether the company is large or not like the 21st Century Fox.

If the company is making too much money to the extent of awarding its CEO such a large salary and on top of it all gets awarded other multiple benefits, then they should distribute some of these profits to the best performing employees as a motivation to the rest. It can also be put into corporate social responsibility to assist the rest of society. If this decision cannot be made by the CEO himself, to refuse to accept such a large salary, then the CEO is selfish. Understandably, the CEO has worked hard to reach that position and hence deserves the high pay as a reward for past efforts but the pay should still not be ridiculously high.

Many people are suffering in the world and can use a little financial assistance from corporates. The maximum salary should be an average of $2 million in addition to the other fringe benefits and the extra money be used to assist those in need in society.