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# The average CEO is paid many times more than the average

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Director
Joined: 30 Sep 2017
Posts: 600
GMAT 1: 720 Q49 V40
GPA: 3.8
The average CEO is paid many times more than the average  [#permalink]

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07 Dec 2019, 23:17
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5% (low)

Question Stats:

86% (01:08) correct 14% (01:10) wrong based on 118 sessions

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The average CEO is paid many times more than the average worker is paid at the same company. But it is certain that no CEO works many times harder than the average worker. Thus the high pay of CEO is wholly unjustified.

Which one of the following principles, if true, most helps to justify the reasoning of the argument above?

A. At any given company, people's pay should be proportional to how hard they work.
B. At any given company, people's pay should be proportional to how much they contribute to the overall success of the company.
C. At any given company, people's pay should be proportional to how much they need to sustain reasonably comfortable lifestyle.
D. At any given company, people who perform the same work should receive equal pay.
E. People who are able to work hard have an obligation to do so

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Senior Manager
Joined: 21 Jun 2017
Posts: 399
Location: India
Concentration: Finance, Economics
Schools: IIM
GMAT 1: 620 Q47 V30
GPA: 3
WE: Corporate Finance (Commercial Banking)
Re: The average CEO is paid many times more than the average  [#permalink]

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17 Dec 2019, 03:02
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In order to justify this argument, our answer could be "Equal hard work equal pay".

A. At any given company, people's pay should be proportional to how hard they work. Yes correct.

B. At any given company, people's pay should be proportional to how much they contribute to the overall success of the company.
Exacly opposite of wht we are looking for.

C. At any given company, people's pay should be proportional to how much they need to sustain reasonably comfortable lifestyle.
This is irrelevant.

D. At any given company, people who perform the same work should receive equal pay.
Opposite to what we are looking for. If this is true CEO is rightly compensated higher than labor

E. People who are able to work hard have an obligation to do so.
What pushes people to work hard is irrelevant at best
Re: The average CEO is paid many times more than the average   [#permalink] 17 Dec 2019, 03:02
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