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CEO salaries are made public. We object to them, but most of us don't intentionally avoid working for companies that have that outsized pay discrepancy. Likewi
by lostcolony 5y ago
CEO salaries are made public. We object to them, but most of us don't intentionally avoid working for companies that have that outsized pay discrepancy.
Likewise, if I'm making more than I could at any other company, but then found out a coworker was making twice as much as me, I'd still not leave.
How much coworkers are paid doesn't affect whether or not we leave the company; it's how we're paid compared to the rest of the market that does. Just taking that off the table.
What it DOES affect is our morale and our own performance. To that end, it benefits companies to either keep it secret, or to try and ensure that pay discrepancies within the same role match the actual performance. If that person making double or triple what you do is actually delivering 2x or 3x what you are, and you know that if your own performance increases, your comp will too, that seems like solid incentive. If it's completely disconnected, your morale will drop, and your performance likely -will- drop to be half or a third of what that person's is, and it becomes self-fulfilling.
I think the main benefit to making compensation transparent is that it also forces the company to be very mindful about how compensation and performance are tied. They're supposed to be anyway; that's already a goal. It just raises the stakes for getting it right.