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The trend of the high level and constant growth in their salaries has been a cause for greater concern amongst the production committees who see the growth in salary as a challenge. The debate has rise over greater number of concerns of which the concern of economic efficiency the most debated one for executive compensation. Here the main argument put by the economic efficiency point of view is that high executive compensation leads to high performance which drives the corporation to even higher level. When the executives strive to earn the incentives, executives achieve better performance and in turn benefit the societyAustralian Government. (2009). But the concern rises when the corporate perform poorly despite such high compensation to the executives. The most common examples are seen in the Australian markets where the high level compensation proves to be unsound for the corporate where in contrary to the compensation; they prove to be detrimental to the growth factors.
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