Introduction This paper explores the importance of CEO pay for the stakeholders of Caterpillar and John Deere companies. Specifically, the analysis revolves around the significance of CEO pay to different stakeholders. Besides, the paper investigates the approaches of the Caterpillar and John Deere to CEO pay. In the summary, the paper presents recommendations on the best strategies that the two companies should use to address the CEO pay. Literature Review: Identify Issues Shareholder Reports& Public Across the globe, shareholders have keen interest on CEO pay since it is an indication of how well a company in performing. For instance, the representative of the shareholders in the board of directors might be interested in the best strategies to adopt to ensure that the CEO pay is not only motivational but within the margin of profitability in a company. On the hand, the general public has displayed concern in terms of the disparity in the CEO-to-Worker Pay-Ratio, which is currently averaged at 1:300 for most of the Fortune 500 companies (Frydman & Jenter, 2010). The common public opinion suggests that this widening disparity gap has made some companies unpopular since the level of employee motivation in such environments is often very low (Shropshire, 2015). The public seems to imply that there should be rational justification of the CEO-to-Worker Pay-Ratio to guarantee labor sustainability and organizational performance. Professional Press International Press such as the Bloomberg and Forbes always publish the compensation of CEOs, especially for big companies. In the 2015 edition of the New York Times, Oracle’s CEO was reported as having the highest compensation of $78 million. The magazine noted that nearly all Fortune 500 companies have CEOs who earn millions of dollars as pay compensation each year (Press, 2014). The compensation to the CEOs comes in the form of monetary value, stocks, and stake in company ownership. Several professional presses such as Bloomberg have seriously questioned the rationale behind some of the compensational plans adopted by some companies. For instance, the 2015 edition of the Bloomberg questioned the sustainability of the Oracle CEO’s compensation plan in the midst of inequality in the financial rewards to other employees. As indicated in the Bloomberg report, “two-thirds of executive compensation is tied to stock-based incentives, and one study found that more than half of all pay-for-performance compensation is tied to long-term equity incentive plans” (Frydman & Jenter, 2010, par. 9). Popular Press Many local and international new channels such as the CNN and Aljazeera have delved into the CEO compensation plans adopted by companies across the globe, in terms of relating these plans to level of organization performance. For instance, the popular Business Traveler program, hosted by Richard Quest in the CNN channel, has become an important source of information on the profiling and compensation plans for CEOs of different companies. The findings in most of the interviews conducted by Richard Quest suggest that there is need to create an ideal CEO compensation plan that considers the salaries of other employees in order to establish