Case Study: Should executives make the money they do?It is a well known fact that many people holding high positions in companiesmake an exorbitant amount of money. In 1970, CEO salary and bonus packageswere typically about $700,000 worldwide- 25 times the average production workersalary; by 2000, CEO salaries had jumped to almost $2.2 million on average, 90times the average salary of a worker worldwide, according to a 2004 study. In thepast 12 years, there has been a 444 per cent salary increase for Canada’s topCEOs. The top 10 earners collected a total of $60.7 million in 1996; however, by2007, that number had jumped to $330.3 million. Chief executive officer deservethe money they make because the high pay seems small when compared tocompany profits and they are in the tough position of making decisions that affectthe whole company. The CEO is responsible for the success or failure of thecompany. Operations, marketing, strategy, financing, human resources, hiring,firing, sales, all falls on the CEO’s shoulders. It only makes sense that if theemployee is directly responsible for the success of their company, then theydeserve to get their payback.First, a CEO’s salary is reasonable when compared to the profit of thecompany. When the public sees a salary that they consider to be too big, they areusually looking at only half of the picture. A recent survey of America's top 50 CEOsshowed that their pay rose 5% to an average annual salary of $10.7 million. If onetakes into account just how much the top 50 companies earn, on average, theygenerated $4.58 billion in profits from $64.2 billion in revenue. That means that, onaverage, a top 50 CEO made 0.016% of the revenue his company generated, or0.23% of their profits. Not so bad is it? Furthermore, Stanley O'Neal was near the topof the list, having made $32 million in 2004. But O'Neal's company, Merrill Lynch, wasnot in the Fortune 50, coming in instead at number 58. Merrill generated $3.99 billionin profits on revenue, which means that Mr. O'Neal's salary was equal to 0.11% ofrevenues. Another, Robert Allen who runs AT&T has a total salary of 20 milliondollars. This salary seems to be extremely high when put as a statistic by itself.However, his salary calculates to be 1/3,450 of ATT's gross. A CEO’s salary looksacceptable after all the cards are laid out.Second, Corporation executives are in a tough position of making decisionsthat affect the whole company. Important decisions are made by them everyday,many of which decide whether a company will prosper, or go under. Many of themhad to work their way to the top. They usually have extensive businessbackgrounds, and know their field well. There are very few people qualified, orknowledgeable enough to perform well in executive positions. Thus allowing themto demand the high pay that they earn.It has been established that top executives do make a lot of money. It hasalso been established that they deserve the money that they receive is welldeserved. CEO’s make important decisions everyday. They are under atremendous amount of pressure to succeed. Their experience and everydaydecision making affect the future of the company. Cooperation executives arewell deserving of their pay.