1. Expanding CEO-to-Worker Pay Gap Bad for Business

    Expanding CEO-to-Worker Pay Gap Bad for Business

    Public Domain Companies whose CEOs earn hundreds of times their average employee's pay are viewed as less desirable to work for, and to do business with, according to a new University of California, Berkeley, study. Probing a new angle of income inequality, UC Berkeley researchers sought to determine how people would feel about a company once they knew what the top executive made compared to the workers...

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    1. Our results indicate that consumers are less interested in purchasing from and getting a job at companies with high CEO-to-worker compensation ratios.
    2. This likely reflects a psychological aversion toward inequity, which develops early in life.
    3. Our study shows that CEO-to-worker ratios really matter to employees and consumers alike.
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