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More paid CEOs treat employees worse: Study

The study said more power leads managers to mistreat subordinates more and evaluate them unfavourably.

Written by ANI | New York |
July 8, 2010 2:37:30 pm

The more a CEO gets paid,the more likely it is he”ll treat his employees harshly,according to a new study.

Professors at Rice University,Harvard University and the University of Utah believe that as executives get paid more,they get a heightened sense of power,and “more power leads managers to mistreat subordinates more and evaluate them more unfavourably,” reports the New York Daily News.

Should executives be paid less to try to create a kinder work environment?  The study concludes the issue should be weighed.

“We have argued that in addition to examining the links between executive pay and a firm’s financial success,it is important to consider a thus far unreported ethical implication of high executive compensation — that executives with higher income treat employees more meanly,” the study concludes.

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First published on: 08-07-2010 at 02:37:30 pm

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