Study: The More CEO Paid, The Less Workers Like Them

By:
Chris Gaetano
Published Date:
Sep 8, 2016
PayScale

A recent study has discovered CEO pay and employee approval have an inverse relationship, though this can be overcome through company culture, according to Glassdoor. The study, undertaken by Glassdoor's chief economist, came from self-reported information from people who choose to review their company on the website Glassdoor. The data itself looked at 1.2 million CEO approval ratings for roughly 70,000 different employers in the U.S. What it found was that workers tend not to like CEOs who make a lot of money. 

"In general, the figure shows a negative link between CEO pay and approval ratings:
Lower-paid CEOs receive the highest approval marks, while the highest-paid CEOs
receive the lowest average approval ratings," said the study. 

However, it quickly added that the relationship is "complex" and "noisy," pointing out that CEO approval is influenced by many factors besides executive pay, such as company culture and performance. However even when controlling for these other factors, the study said that there remains a link between CEO pay and negative impressions of that CEO by workers. 

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