Question

Should the government limit CEO salaries based on average employee salaries? If so, what should the limit be?

Answer 1

In one way if government limits the salary of a CEO based on average employee salary than it will considered as the interference of government in private sector. But on the other hand Is a company more successful if 99% of its staff is well-compensated and happy or if the CEO alone is compensated? Thus, it becomes really contradictory to asses this situation but the government should create maximum limit as salary of CEO and distribute rest of the wage to employees. The limit can be upto 5 lakhs as an average.