Definition
CEO compensation represents the total remuneration awarded to top executives and must align with performance, fairness, and stakeholder expectations.

Introduction
When CEOs earn 300 times more than employees, questions arise. Ethics demands justification and transparency, not secrecy.

Explanation
1️⃣ Pay-Performance Link – Reward real, not inflated, results.
2️⃣ Fairness – Consider employee welfare and social context.
3️⃣ Disclosure – Publish executive pay ratios.
4️⃣ Governance Committee – Ensure independent review.
5️⃣ Moral Signal – Excessive pay breeds resentment, not respect.

Key Takeaways

Ethical pay fosters morale and legitimacy.

Transparency deters greed.

Leadership must reflect shared prosperity.

Real-World Case
Tim Cook (Apple) voluntarily reduced bonus in years of under-performance—an act of accountability.
Reference: https://www.apple.com