Title: Neo classical theory of distribution
Essay Details
| Subject: | Business |
| Author: | Virginia C |
| Date: | December 29, 2014 |
| Level: | University |
| Grade: | A |
| Length: | 3 / 603 |
| No of views: | 0 |
| Essay rating: | good 0, average 0, bad 0 (total score: 0) |
Essay text:
But if both demand and supply where high then it would lower the wages offered as there would be competition between the people to gain the job.
So CEO's are highly skilled and the demand for them is high especially if they have experience, with very little people fitting this category then companies have to offer high wages (plus incentives) to gain (buy) these skills to use in their company SHOW YAHOO GUY AGAIN If they want them they need to compensate them...
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Another reason for companies to offer high wages is that the more important the decision and the more people it affects relates to how much you should be paid to CEO's are making hundreds of decisions a week which could affect hundreds and even thousands of employees within the company in a good or bad way so there jobs are always at risk if a bad decision or no action is made, so there is a high risk involved which is compensated by pay...
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