CIPD: High CEO salaries demotivate employees

Companies that reward their CEOs with salaries that are too high risk demotivating their workforce and leaving staff with “a real sense of unfairness.”

That is according to new research from the CIPD. The professional body for HR and people development surveyed 1,030 UK workers for the report. The results reveal that 71% of employees believe that CEOs in the UK are earning too much.

These high salaries may be detrimental to the productivity of the company, as 59% of employees stated that Chief Executives’ large remunerations demotivate them.

Additionally, 55% of UK workers believe that paying CEOs too much may be bad for firms’ reputations.