In this study, we examine the relationship between within-firm pay inequality and employee productivity. We use hand-collected data on a sample of S&P 1500 companies from 2018-2022 and find a concave relationship between the relative CEO pay and employee productivity. Consistent with tournament...

One of main corporate governance problems that plague the investors is the high salaries paid to the executives. Such high salaries were justified to keep the executives motivated. This article emphasizes, based on literature survey, that in spite of the existence of the many perquisites, money...