Human Resource: Current compensation program; is it the correct approach?

Please feedback about this post, your own opinion or if need something to said about it, you agree or disagree with this opinion and why?

1-One concern about executive pay today is that employees and the public believe that company executives get paid way too much and are offered too much incentives while the other employees either are underpaid or not offered any incentives for teh hard work they do .Another concern that is causing the government and others to focus more on the pay of executives is the current state of our economy because if a company is consistenly laying off workers and frontline employees and complians they are not making enough money or business is bad but then pays their executives huge bonuses every month or lavish them with gifts such as :Golf trips and vacations i raises a red flag.

Please answer this questions?

2-Compensation programs can be administered in either a centralized or decentralized manner. Which method is used in your current or former organization? Do you think it is the correct approach?