Firms that have large gaps in pay across top managerial staff suffer negative effects.

Question

Quizplus · Accepted Answer

Research has shown that firms with large gaps in pay between their top executives and lower level employees have lower employee morale, higher turnover rates, and reduced company performance. This is because it can create a sense of unfairness and inequality among workers, leading to resentment and potentially lower productivity. Additionally, it may imply that the company values the contributions of top executives more than those of the rest of the staff, which can be demotivating.

Firms That Have Large Gaps in Pay Across Top Managerial