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2023 | OriginalPaper | Chapter

Sustainability of CEO and Employee Compensation Divide: Evidence from USA

Authors : Vaibhav Aggarwal, Adesh Doifode

Published in: Intelligent Communication Technologies and Virtual Mobile Networks

Publisher: Springer Nature Singapore

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Abstract

The chapter delves into the significant increase in CEO compensation since 1965, with a particular focus on the USA. It examines the relationship between CEO pay and employee compensation, highlighting the disparity and its impact on organizational performance and income inequality. The text also explores the factors driving CEO compensation, such as stock market performance and the influence of CEOs in determining their own pay. Additionally, it discusses the potential consequences of this compensation divide, including increased employee turnover and its effect on organizational efficiency. The chapter further reviews academic literature on the topic, presenting various perspectives and findings. It concludes by suggesting potential policy solutions to mitigate the compensation divide and its adverse effects on organizations and the economy.

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Literature
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Metadata
Title
Sustainability of CEO and Employee Compensation Divide: Evidence from USA
Authors
Vaibhav Aggarwal
Adesh Doifode
Copyright Year
2023
Publisher
Springer Nature Singapore
DOI
https://doi.org/10.1007/978-981-19-1844-5_35