This paper will discuss why CEOs are not overpaid. It will apply the utilitarian ethical principle to many aspects of CEO compensation and determine whether or not such compensation is justifiable. The paper will examine whether or not their performance is justifiable in terms of salary, since they play such an important role in the company's livelihood, as well as the theory of the agency principle, and how it is addressed in the interest of shareholders and other people involved in the company. business, supply and demand for CEOs, and the paper will describe the comparison of other professions to help connect the idea of ​​fair CEO compensation. CEO compensation has been a heated debate lately, and it can be argued that either they are overpaid or their payment is justified by the amount of work they do and their performance. To answer the question of whether CEO compensation is justified, it must be examined from a utilitarian perspective, in which the good of many outweighs the good of one. It is true that many CEOs are paid exorbitant amounts of money; however, their payment is justified by the amount of money they bring to the company and shareholders. According to Shah et.al, many factors impact CEO compensation. CEO compensation doesn't just depend on the CEO's performance. There are a number of factors that play a role in CEO compensation, including coworker. the people who help govern the company (board of directors, audit committee), the size of the company and the performance achieved by the CEO (2009). In this article, the focus will be on the performance aspect of the CEO. There are some CEOs for whom this is not the case and therefore...... middle of article ......from Forbes: http://www.forbes.comKavoussi, B. (May 21, 2012). CEO Salary Report: 2011 Executive Compensation More Corrated With Company Performance than 2010. Retrieved from Huffington Post: http://www.huffingtonpost.comPomerantz, D. (July 16, 2013). Robert Downey Jr. tops Forbes list of Hollywood's highest-paid actors. Retrieved from Forbes: http://www.forbes.comShah, SZ, Jarved, T. and Abbas, M. (2009). Determinants of CEO Compensation Empirical Evidence from Pakistani Listed Companies. International Journal of Research in Finance and Economics, 149-159. Sumo, V. and Weitzman, H. (2013). Are CEOs overpaid? The case against. Retrieved from Capital Ideas: http://www.chicagobooth.edu Worstall, T. (March 1, 2013). Solving the principal agent problem: Apple insists that executives must own stock in the company. From Forbes: http://www.forbes.com