Is it a good thing for senior management positions to have much higher salaries than other workers? Inequality exists everywhere in society and so does it in the company. There are many people complaining that senior managers have significantly higher salaries which they don’t deserve. However, I’m against this viewpoint and agree that senior managers deserve high salaries only if the institution designs a reasonable mechanism of punishment. First, a high salary is insurance for a company’s underlying risk. Without the motivation of high salaries, it’s hard for senior managers to devote themselves totally to their work. As is known to all, they play a pivotal role in the company’s operation, and thus if they are less willing to work, the company’s operational efficiency and performance will be influenced to a large extent and it will bring about plenty of issues, for example, the lack of risk prevention. Second, a high salary is the incentive of innovation, which could make the company earn more profits. It’s not usual for companies to attract talented employees by offering high salaries in the recruiting process. Thus, there is the same need to compensate managers with high salaries for their administrative ability. They are a group of people who is the soul of the company and make sure that the company keeps making innovations and survive. Therefore, they are worth receiving a bonus. However, it doesn’t mean their high salaries should be taken for granted. A mechanism of punishment is supposed to be applied to them as well. In detail, if they are deemed as unqualified managers, which can be indicated from the performance of the company, their salaries should, therefore, be cut down. In practice, there are many real companies giving a flexible salary to senior managers, which solves out this problem. In conclusion, it doesn’t always work to give senior high salaries for the better performance of the company. However, it’s necessary to pay them above-average salaries for risk prevention and innovation of the company.