High Packages for Business Executives - Essay Example

The shortage of competent business performers and the urge to motivate top-level managers have contributed to the rise in pay. However, it is indisputable that organizations should pay salaries that are proportional to their income.

 If I was offered a high package to work in an organization that is laying off employees and on the verge of running bankrupt I would be hesitant to accept the offer. From a personal perspective, the cost of running an organization should be reflected by the organization performance. On this note, an organization that is laying off its employees and pays high salaries to the executives lacks the capacity to grow (Barkema & Gomez-Mejia, 2010). Notably, there are a number of reasons why organizations offer huge packages to their executive members. The main argument is to avoid executives turnover when business talent is limited and to motivate them to drive the organization to success.