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Spread of Pay difference between CEO and lowest ranking employee

What do you think should be a reasonable spread (either a dollar amount, XX times more than or percentage number) between the earnings of a firm's CEO and its lowest paid hourly workers and why? Provide your detailed explanation on this volatile issue.

(NOTE: Be careful when using percentages. For ex, if the lowest paid employee makes $20,000 and you recommend a 100% higher for the CEO, you are only offering the CEO $40,000, and that really isn't reasonable.) I expect for you to suggest a reasonable spread, using either a dollar amount, XX times more, or percentage amount, and to not simply tell me that it isn't possible to do so!

NOTE: DO NOT suggest an hourly pay for the CEO, as he/she is a salaried person, as are all management personnel of a firm.

Operation Research, Management Studies

  • Category:- Operation Research
  • Reference No.:- M926601

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