July 16,
2010
Forwarding
an interesting finding posted by Veritas Executive Compensation Consultants…
Want to
get an idea of how nice a CEO will be? You might want to sneak a look at their
paycheck.
The more
a CEO gets paid, the more likely it is that they'll treat their employees
harshly, according to a new study.
The
study, conducted by professors at
The
authors believe that this increase in meanness is due to an increase in power:
As executives get paid more, they get a heightened sense of power, and
"more power leads managers to mistreat subordinates more and evaluate them
more unfavorably," the findings suggest.
This
meanness gets worse as the gap between CEO compensation and the pay of
lower-level employees widens, according to the study, called "When
Executives Rake in Millions: Meanness in Organizations."
"Higher
income inequality between executives and ordinary workers results in executives
perceiving themselves as being all-powerful, and this perception of power leads
them to maltreat rank-and-file workers." the study found.
Should
executives be paid less to try to create a kinder work environment? The study concludes the issue should be
weighed.
"We
have argued that in addition to examining the links between executive pay and a
firm’s financial success, it is important to consider a thus far unreported
ethical implication of high executive compensation — that executives with
higher income treat employees more meanly," the study concludes.
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Veritas
Executive Compensation Consultants, LLC. (“Veritas”) is a truly independent
executive compensation consulting firm.
We are
independently owned, and have no entangling relationships that may create
potential conflict of interest scenarios, or may attract the unwanted scrutiny
of regulators, shareholders, the media, or create public outcry.
Veritas
also believes that public company Boards of Directors and shareholders deserve
higher standards of disclosure that verify the independence of the executive
compensation advice that their companies receive from their consulting
firms. This disclosure will assist in
curing the terribly negative views that government regulators, shareholders, employees,
the media, and the American public have on executive pay.
Veritas
goes above and beyond to provide unbiased executive compensation counsel. Since
we are independently owned, we do our job with utmost objectivity - without any
entangling business relationships.
Following
stringent best practice guidelines, Veritas works directly with boards and
compensation committees, while maintaining outstanding levels of appropriate
communication with senior management.
Veritas
promises no compromises in presenting the innovative solutions at your command
in the complicated arena of executive compensation.
We
deliver the advice that you need to hear, with unprecedented levels of
responsive client service and attention.
Visit us
online at www.veritasecc.com , or
contact our CEO Frank Glassner personally via phone at (415) 618-6060, or via
email at fglassner@veritasecc.com
. He’ll gladly answer any questions you might have.




