Executive compensation is one of the most talked about compensation as it involves a lot of money in exchange of the persons expertise, willingness to deliver results and push the company forward into a profitable position and sustain that profit for a significant amount of time. A Chief Executive Officer (CEO) is a person who is in charge of the prime executions of the company’s decisions and implementing it in the right direction, however he or she does not own the company they serve. They are usually picked up by the board of directors and the pay package and salary are also decided by the board. They are also responsible for steering the company from loss making to profit making and the salary offered often includes the major task to be performed and his ability to deliver, even if the markets are not conducive to growth and stability. This paper discusses the Productivity Commission’s inquiry into the executive compensation of CEO stating that in spite of poor performance their pay has been increased fuelling a concern among community.