J.P. Morgan, the iconic financier, is reputed to have estimated the proper compensation for an organization's...

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Accounting

J.P. Morgan, the iconic financier, is reputed to have estimatedthe proper compensation for an organization's chief executiveofficer to be 20 times the salary of its lowest paid employee.Today, however, the average CEO is compensated at 200 times therate of the lowest paid employee. In your estimation, what shouldthe distance between highest- and lowest-paid actually be? Explainyour reasoning for either a larger or smaller gap between employeeand board member compensation and highlight potential benefits anddrawbacks to your chosen compensation structure.

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It should somewhere lie between 20 to 200 times most probably 100 times as CEO no doubt can energise and show the right path and leadership this at least this much he deserves However it still depends on various factors like industry standards intellectual level required from CEO qualification level etc so no single figure can be given what is said above is See Answer

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