Discussion: View Thread

  • 1.  CEO salaries as a factor of employee salaries

    Posted 02-21-2008 18:20
    Greetings OBnetters,
     
    Would anyone be able to offer some references to research that discusses the effect of CEO salaries that are significantly higher (e.g., a factor of 100) than employees' salaries on perceptions of justice, etc. I recall seeing such research some time ago, but I've been unable to find it. I'm planning to hold a debate on this very interesting topic in my executive MBA HRM class and would like to give the students specific resources that they can reference.
     
    Thanks in advance!
    Celeste
     
    grimard-brotheridge.celeste@uqam.ca" target="_blank">
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    Céleste Brotheridge, Professeure
    Département d'organisation et ressources humaines
    École des sciences de la gestion
    Université du Québec à Montréal
    C.P. 8888, Succ. Centre-Ville
    Montréal QC Canada H3C 4R2
    Téléphone: (514) 987-3000 ext. 6540
    Fax: (514) 987-0407
     

    Ask a question on any topic and get answers from real people. Go to Yahoo! Answers.


  • 2.  CEO salaries as a factor of employee salaries

    Posted 02-22-2008 05:11

    Hello Celeste and colleagues,

     

    This is a point that I like to expose and touch on, with a bit of provocation, during my MBA OB courses. One of the things I use to start a discussion is to show a clip that shows a part of an interview (screened on a US TV channel; http://www.pbs.org/newshour/bb/business/july-dec02/perks_09-16.html) on Executive Perks. It features Rakesh Khurana from Harvard BS, who researched this issue and wrote some interesting articles (and a book) on the topic.

     

    Cheers,

     

    Jacob

     

     

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    Jacob Eisenberg, Ph.D.

    Chair, International Theme Committee, <st1:place w:st="on"><st1:placetype w:st="on"><st1:place w:st="on"><st1:placetype w:st="on">Academy</st1:placetype></st1:place></st1:placetype> of <st1:placename w:st="on"><st1:placename w:st="on">Management</st1:placename></st1:placename></st1:place>

     

    <u1:place u2:st="on"><u1:placename u2:st="on"><st1:place w:st="on"><st1:placename w:st="on">UCD</st1:placename></st1:place></u1:placename> <u1:placetype u2:st="on"><st1:placetype w:st="on">School</st1:placetype></u1:placetype></u1:place> of Business,
    <u1:placetype u2:st="on"><st1:placetype w:st="on">University</st1:placetype></u1:placetype> <u1:placetype u2:st="on"><st1:placetype w:st="on">College</st1:placetype></u1:placetype> <u1:city u2:st="on"><u1:place u2:st="on"><st1:city w:st="on"><st1:place w:st="on">Dublin</st1:place></st1:city></u1:place></u1:city>,
    Belfield, <u1:city u2:st="on"><u1:place u2:st="on"><st1:city w:st="on"><st1:place w:st="on">Dublin</st1:place></st1:city></u1:place></u1:city> 4,
    <u1:country-region u2:st="on"><u1:place u2:st="on"><st1:country-region w:st="on"><st1:place w:st="on">Ireland</st1:place></st1:country-region></u1:place></u1:country-region>

    Tel:  +353-1-716 4774
    Fax:  +353-1-716 4762
    Email: Jacob.eisenberg@ucd.ie

    http://www.ucd.ie/management/

    http://login.aomonline.org/aom.asp?id=188

     

    From: Organizational Behavior Division Listserv [mailto:OB@AOMLISTS.pace.edu] On Behalf Of Céleste Brotheridge
    Sent: 21 February 2008 23:20
    To: OB@AOMLISTS.pace.edu
    Subject: CEO salaries as a factor of employee salaries

     

    Greetings OBnetters,

     

    Would anyone be able to offer some references to research that discusses the effect of CEO salaries that are significantly higher (e.g., a factor of 100) than employees' salaries on perceptions of justice, etc. I recall seeing such research some time ago, but I've been unable to find it. I'm planning to hold a debate on this very interesting topic in my executive MBA HRM class and would like to give the students specific resources that they can reference.

     

    Thanks in advance!

    Celeste

     

    grimard-brotheridge.celeste@uqam.ca" target="_blank">

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

    Céleste Brotheridge, Professeure

    Département d'organisation et ressources humaines
    École des sciences de la gestion
    Université du Québec à Montréal
    C.P. 8888, Succ. Centre-Ville
    Montréal QC Canada H3C 4R2
    Téléphone: (514) 987-3000 ext. 6540

    Fax: (514) 987-0407
     

     

    Ask a question on any topic and get answers from real people. Go to Yahoo! Answers.



  • 3.  CEO salaries as a factor of employee salaries

    Posted 02-22-2008 10:47

    Dear Colleagues,

     

    Here are two slides that I use in my book to raise awareness of this issue.  The slides alone stimulate a discussion about many things including capitalism vs. socialism, distributive justice, energy in the work force, etc.  Here you can see the ten year trends in exec/employee multiples across countries.  I agree with Susan Herman's comment that Starpower, old but classic, makes the point in trump.

     

    FYI.

     

    Cheers,

     

       Jim

    James G. S. Clawson

    Johnson & Higgins Professor of Business Administration

    Darden GSB,  University of Virginia

    Box 6550  /  100 Darden Boulevard

    Charlottesville, VA 22906  /  22903

    Phone:  434 924 7488

    Fax: 434 243 7680

    Web:  http://faculty.darden.virginia.edu/clawsonj/

     

    From: Organizational Behavior Division Listserv [mailto:OB@AOMLISTS.pace.edu] On Behalf Of Jacob Eisenberg
    Sent: Friday, February 22, 2008 5:11 AM
    To: OB@AOMLISTS.pace.edu
    Subject: Re: CEO salaries as a factor of employee salaries

     

    Hello Celeste and colleagues,

     

    This is a point that I like to expose and touch on, with a bit of provocation, during my MBA OB courses. One of the things I use to start a discussion is to show a clip that shows a part of an interview (screened on a US TV channel; http://www.pbs.org/newshour/bb/business/july-dec02/perks_09-16.html) on Executive Perks. It features Rakesh Khurana from Harvard BS, who researched this issue and wrote some interesting articles (and a book) on the topic.

     

    Cheers,

     

    Jacob

     

     

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    Jacob Eisenberg, Ph.D.

    Chair, International Theme Committee, Academy of Management

     

    UCD School of Business,
    University College Dublin,
    Belfield, Dublin 4,
    Ireland

    Tel:  +353-1-716 4774
    Fax:  +353-1-716 4762
    Email: Jacob.eisenberg@ucd.ie

    http://www.ucd.ie/management/

    http://login.aomonline.org/aom.asp?id=188

     

    From: Organizational Behavior Division Listserv [mailto:OB@AOMLISTS.pace.edu] On Behalf Of Céleste Brotheridge
    Sent: 21 February 2008 23:20
    To: OB@AOMLISTS.pace.edu
    Subject: CEO salaries as a factor of employee salaries

     

    Greetings OBnetters,

     

    Would anyone be able to offer some references to research that discusses the effect of CEO salaries that are significantly higher (e.g., a factor of 100) than employees' salaries on perceptions of justice, etc. I recall seeing such research some time ago, but I've been unable to find it. I'm planning to hold a debate on this very interesting topic in my executive MBA HRM class and would like to give the students specific resources that they can reference.

     

    Thanks in advance!

    Celeste

     

     

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

    Céleste Brotheridge, Professeure

    Département d'organisation et ressources humaines
    École des sciences de la gestion
    Université du Québec à Montréal
    C.P. 8888, Succ. Centre-Ville
    Montréal QC Canada H3C 4R2
    Téléphone: (514) 987-3000 ext. 6540

    Fax: (514) 987-0407
     

     

    Ask a question on any topic and get answers from real people. Go to Yahoo! Answers.



  • 4.  CEO salaries as a factor of employee salaries

    Posted 02-22-2008 11:01

    Celeste,

    You may find the following article useful:

    Cowherd, D. M., & Levine, D. I. (1992). Product quality and pay equity between lower-level employees and top management: An Investigation of distributive justice theory. Administrative Science Quarterly, 37, 302-320.

    Best,

    Paresh

     

    Paresh Mishra

    Doctoral Student (Organizational Behavior)

    Kelley School of Business,

    Indiana University

    812-855-8666 (O)

    404-285-6670 (C)

     

    From: Organizational Behavior Division Listserv [mailto:OB@AOMLISTS.pace.edu] On Behalf Of celeste_brotheridge@YAHOO.CA
    Sent: Thursday, February 21, 2008 6:20 PM
    To: OB@AOMLISTS.pace.edu
    Subject: CEO salaries as a factor of employee salaries

     

    Greetings OBnetters,

     

    Would anyone be able to offer some references to research that discusses the effect of CEO salaries that are significantly higher (e.g., a factor of 100) than employees' salaries on perceptions of justice, etc. I recall seeing such research some time ago, but I've been unable to find it. I'm planning to hold a debate on this very interesting topic in my executive MBA HRM class and would like to give the students specific resources that they can reference.

     

    Thanks in advance!

    Celeste

     

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

    Céleste Brotheridge, Professeure

    Département d'organisation et ressources humaines
    École des sciences de la gestion
    Université du Québec à Montréal
    C.P. 8888, Succ. Centre-Ville
    Montréal QC Canada H3C 4R2
    Téléphone: (514) 987-3000 ext. 6540

    Fax: (514) 987-0407
     

     

    Ask a question on any topic and get answers from real people. Go to Yahoo! Answers.



  • 5.  CEO salaries as a factor of employee salaries

    Posted 02-22-2008 11:29
    Here is stuff I use in my principles of manageent class for a debate on the topic: (looks to be different pbs links than the one posted by Jacob)



    Part on executive compensation excess

    http://www.pbs.org/newshour/bb/business/july-dec02/ceo1_12-02.html



    part two (continuation of the above video)

    http://www.pbs.org/newshour/bb/business/july-dec02/ceo2_12-03.html



    Carolyn Birmingham
    Assistant Professor, Management
    University of Idaho

    ________________________________

    From: Organizational Behavior Division Listserv on behalf of Jacob Eisenberg
    Sent: Fri 2/22/2008 2:11 AM
    To: OB@AOMLISTS.pace.edu
    Subject: Re: CEO salaries as a factor of employee salaries



    Hello Celeste and colleagues,



    This is a point that I like to expose and touch on, with a bit of provocation, during my MBA OB courses. One of the things I use to start a discussion is to show a clip that shows a part of an interview (screened on a US TV channel; http://www.pbs.org/newshour/bb/business/july-dec02/perks_09-16.html) on Executive Perks. It features Rakesh Khurana from Harvard BS, who researched this issue and wrote some interesting articles (and a book) on the topic.



    Cheers,



    Jacob





    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    Jacob Eisenberg, Ph.D.

    Chair, International Theme Committee, Academy of Management



    UCD School of Business,
    University College Dublin,
    Belfield, Dublin 4,
    Ireland

    Tel: +353-1-716 4774
    Fax: +353-1-716 4762
    Email: Jacob.eisenberg@ucd.ie <mailto:Jacob.eisenberg@ucd.ie>

    http://www.ucd.ie/management/ <http://www.ucd.ie/management/>

    http://login.aomonline.org/aom.asp?id=188 <http://login.aomonline.org/aom.asp?id=188>



    ________________________________

    From: Organizational Behavior Division Listserv [mailto:OB@AOMLISTS.pace.edu] On Behalf Of Céleste Brotheridge
    Sent: 21 February 2008 23:20
    To: OB@AOMLISTS.pace.edu
    Subject: CEO salaries as a factor of employee salaries



    Greetings OBnetters,



    Would anyone be able to offer some references to research that discusses the effect of CEO salaries that are significantly higher (e.g., a factor of 100) than employees' salaries on perceptions of justice, etc. I recall seeing such research some time ago, but I've been unable to find it. I'm planning to hold a debate on this very interesting topic in my executive MBA HRM class and would like to give the students specific resources that they can reference.



    Thanks in advance!

    Celeste



    <http://ca.f505.mail.yahoo.com/ym/Compose?To=grimard-brotheridge.celeste@uqam.ca>

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

    Céleste Brotheridge, Professeure

    Département d'organisation et ressources humaines
    École des sciences de la gestion
    Université du Québec à Montréal
    C.P. 8888, Succ. Centre-Ville
    Montréal QC Canada H3C 4R2
    Téléphone: (514) 987-3000 ext. 6540

    Fax: (514) 987-0407




    ________________________________

    Ask a question on any topic and get answers from real people. Go to Yahoo! Answers. <http://ca.answers.yahoo.com/>


  • 6.  CEO salaries as a factor of employee salaries

    Posted 02-26-2008 21:53
    Thanks everyone for your responses to my inquiry. I've summarized them below and in the attached document.
     
     
    Responses to CEO salaries as a factor of employee salaries inquiry
     
     
     
     
     
    See or rather Google on Elliott Jaques felt-fair-pay and you will get a lot.
     
    You can go to the GO Society's web site and download the Craddock bibliography and key word search it for all important work on felt-fair-pay and it's all annotated.
     
     
    You might want to review the company Whole Foods.  They have instituted a policy where the CEO can only make a certain percentage more than the lowest compensation band width. 
     
    Here is stuff I use in my principles of manageent class for a debate on
     the topic:  (looks to be different pbs links than the one posted by
     Jacob)
     
     
     
    Part one executive compensation  excess
     
    http://www.pbs.org/newshour/bb/business/july-dec02/ceo1_12-02.html
     
    part two (continuation of the above video)
     
    http://www.pbs.org/newshour/bb/business/july-dec02/ceo2_12-03.html
     
     
    This is a point that I like to expose and touch on, with a bit of
     provocation, during my MBA OB courses. One of the things I use to start a discussion is to show a clip that shows a part of an interview (screened on a US TV channel;
     http://www.pbs.org/newshour/bb/business/july-dec02/perks_09-16.html) on Executive Perks. It features Rakesh Khurana from Harvard BS, who
     researched this issue and wrote some interesting articles (and a book) on the topic.
     
    Cowherd, D. M., & Levine, <st2:place><st1:middlename>D.</st1:middlename> <st1:middlename>I.</st1:middlename></st2:place> (1992). Product quality and pay equity between lower-level employees and top management: An Investigation of distributive justice theory. Administrative Science  Quarterly, 37, 302-320.
     
     
    I think that Matt Bloom's 1999 piece in AMJ on pay distribution in major league baseball might interest you.  It uses the gini coefficient (a salary dispersion measure) as a predictor of team and individual performance.  This paper predicated on theory about how excessive dispersion in rewards engenders perceptions of procedural or distributive injustice.

    I suspect that both the study's findings and its context (pro baseball) would likely interest your EMBAers.
     
    <v:shapetype stroked="f" filled="f" path="m@4@5l@4@11@9@11@9@5xe" o:preferrelative="t" o:spt="75" coordsize="21600,21600">   <v:stroke joinstyle="miter"></v:stroke>   <v:formulas>    <v:f eqn="if lineDrawn pixelLineWidth 0"></v:f>    <v:f eqn="sum @0 1 0"></v:f>    <v:f eqn="sum 0 0 @1"></v:f>    <v:f eqn="prod @2 1 2"></v:f>    <v:f eqn="prod @3 21600 pixelWidth"></v:f>    <v:f eqn="prod @3 21600 pixelHeight"></v:f>    <v:f eqn="sum @0 0 1"></v:f>    <v:f eqn="prod @6 1 2"></v:f>     <v:f eqn="prod @7 21600 pixelWidth"></v:f>    <v:f eqn="sum @8 21600 0"></v:f>    <v:f eqn="prod @7 21600 pixelHeight"></v:f>    <v:f eqn="sum @10 21600 0"></v:f>   </v:formulas>   <v:path o:connecttype="rect" gradientshapeok="t" o:extrusionok="f"></v:path>     </v:shapetype><v:shape style="WIDTH: 5in; HEIGHT: 270pt" type="#_x0000_t75" o:ole="">   <v:imagedata o:title="" src="file:///C:\DOCUME~1\Owner\LOCALS~1\Temp\msohtml1\01\clip_image001.emz"></v:imagedata>  </v:shape>
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    On Thu, Feb 21, 2008 at 6:19 PM, Céleste Brotheridge <celeste_brotheridge@yahoo.ca> wrote:
    Greetings OBnetters,
     
    Would anyone be able to offer some references to research that discusses the effect of CEO salaries that are significantly higher (e.g., a factor of 100) than employees' salaries on perceptions of justice, etc. I recall seeing such research some time ago, but I've been unable to find it. I'm planning to hold a debate on this very interesting topic in my executive MBA HRM class and would like to give the students specific resources that they can reference.
     
    Thanks in advance!
    Celeste
     
    grimard-brotheridge.celeste@uqam.ca" target="_blank">
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    Céleste Brotheridge, Professeure
    Département d'organisation et ressources humaines
    École des sciences de la gestion
    Université du Québec à Montréal
    C.P. 8888, Succ. Centre-Ville
    Montréal QC Canada H3C 4R2
    Téléphone: (514) 987-3000 ext. 6540
    Fax: (514) 987-0407
     
    Ask a question on any topic and get answers from real people. Go to Yahoo! Answers.

     

    All new Yahoo! Mail -
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  • 7.  CEO salaries as a factor of employee salaries

    Posted 02-26-2008 21:54
    Thanks everyone for your responses to my inquiry. I've summarized them below and in the attached document.
     
    Responses to CEO salaries as a factor of employee salaries inquiry
     
     
     
     
     
    See or rather Google on Elliott Jaques felt-fair-pay and you will get a lot.
     
    You can go to the GO Society's web site and download the Craddock bibliography and key word search it for all important work on felt-fair-pay and it's all annotated.
     
     
    You might want to review the company Whole Foods.  They have instituted a policy where the CEO can only make a certain percentage more than the lowest compensation band width. 
     
    Here is stuff I use in my principles of manageent class for a debate on
     the topic:  (looks to be different pbs links than the one posted by
     Jacob)
     
     
     
    Part one executive compensation  excess
     
    http://www.pbs.org/newshour/bb/business/july-dec02/ceo1_12-02.html
     
    part two (continuation of the above video)
     
    http://www.pbs.org/newshour/bb/business/july-dec02/ceo2_12-03.html
     
     
    This is a point that I like to expose and touch on, with a bit of
     provocation, during my MBA OB courses. One of the things I use to start a discussion is to show a clip that shows a part of an interview (screened on a US TV channel;
     http://www.pbs.org/newshour/bb/business/july-dec02/perks_09-16.html) on Executive Perks. It features Rakesh Khurana from Harvard BS, who
     researched this issue and wrote some interesting articles (and a book) on the topic.
     
    Cowherd, D. M., & Levine, <st2:place><st1:middlename>D.</st1:middlename> <st1:middlename>I.</st1:middlename></st2:place> (1992). Product quality and pay equity between lower-level employees and top management: An Investigation of distributive justice theory. Administrative Science  Quarterly, 37, 302-320.
     
     
    I think that Matt Bloom's 1999 piece in AMJ on pay distribution in major league baseball might interest you.  It uses the gini coefficient (a salary dispersion measure) as a predictor of team and individual performance.  This paper predicated on theory about how excessive dispersion in rewards engenders perceptions of procedural or distributive injustice.

    I suspect that both the study's findings and its context (pro baseball) would likely interest your EMBAers.
     
    <v:shapetype stroked="f" filled="f" path="m@4@5l@4@11@9@11@9@5xe" o:preferrelative="t" o:spt="75" coordsize="21600,21600">   <v:stroke joinstyle="miter"></v:stroke>   <v:formulas>    <v:f eqn="if lineDrawn pixelLineWidth 0"></v:f>    <v:f eqn="sum @0 1 0"></v:f>    <v:f eqn="sum 0 0 @1"></v:f>    <v:f eqn="prod @2 1 2"></v:f>    <v:f eqn="prod @3 21600 pixelWidth"></v:f>    <v:f eqn="prod @3 21600 pixelHeight"></v:f>    <v:f eqn="sum @0 0 1"></v:f>    <v:f eqn="prod @6 1 2"></v:f>     <v:f eqn="prod @7 21600 pixelWidth"></v:f>    <v:f eqn="sum @8 21600 0"></v:f>    <v:f eqn="prod @7 21600 pixelHeight"></v:f>    <v:f eqn="sum @10 21600 0"></v:f>   </v:formulas>   <v:path o:connecttype="rect" gradientshapeok="t" o:extrusionok="f"></v:path>     </v:shapetype><v:shape style="WIDTH: 5in; HEIGHT: 270pt" type="#_x0000_t75" o:ole="">   <v:imagedata o:title="" src="file:///C:\DOCUME~1\Owner\LOCALS~1\Temp\msohtml1\01\clip_image001.emz"></v:imagedata>  </v:shape>
    <v:shape style="WIDTH: 5in; HEIGHT: 270pt" type="#_x0000_t75" o:ole=""><v:imagedata o:title="" src="file:///C:\DOCUME~1\Owner\LOCALS~1\Temp\msohtml1\01\clip_image003.emz"></v:imagedata></v:shape>

     

    On Thu, Feb 21, 2008 at 6:19 PM, Céleste Brotheridge <celeste_brotheridge@yahoo.ca> wrote:
    Greetings OBnetters,
     
    Would anyone be able to offer some references to research that discusses the effect of CEO salaries that are significantly higher (e.g., a factor of 100) than employees' salaries on perceptions of justice, etc. I recall seeing such research some time ago, but I've been unable to find it. I'm planning to hold a debate on this very interesting topic in my executive MBA HRM class and would like to give the students specific resources that they can reference.
     
    Thanks in advance!
    Celeste
     
    grimard-brotheridge.celeste@uqam.ca" target="_blank">
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    Céleste Brotheridge, Professeure
    Département d'organisation et ressources humaines
    École des sciences de la gestion
    Université du Québec à Montréal
    C.P. 8888, Succ. Centre-Ville
    Montréal QC Canada H3C 4R2
    Téléphone: (514) 987-3000 ext. 6540
    Fax: (514) 987-0407
     
    Ask a question on any topic and get answers from real people. Go to Yahoo! Answers.

     

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