Too Much Money Can Make the Boss Mean
Here’s another reason to do away with runaway CEO pay. A study shows bloated CEO pay can make the boss mean.
The study examined the corporate behavior of 261 companies and found a close correlation between pay inequality and poor treatment of workers. In companies where CEOs made much more than their average workers, the companies were more likely to underfund pensions or cut corners on health and safety. Often, according to the study, the bosses engaged in a cost-benefit analysis, calculating that a fine would be a cost of doing business, compared with the profits they could make.
