Most bosses have a higher salary as their employees. But there are exceptions to the rule.
In sportsFor example, a star player often earn more than their coach. And in Film industry, A-list actors Take home bigger paychecks than the director.
So when does it make sense? Employees earn more as your boss? If they teach highly valued and specialized skills, he writes my colleague Natalie McCormick. That includes Kansas City Chiefs Quarterback Patrick Mahomes, who earns around $20 million more per year than his coach Andy Reid. And that includes Nick O’Kanethe former commodities head of Australian bank Macquarie, who earned around $28 million more as the CEO over a period of two years.
But not all cases of wrong compensation There must be staggering sums involved. In the Tech worldemployees with highly specialized skills often earn more than their bosses. And star salespeople who work on commission often receive larger paychecks than their managers after a blockbuster year. Temporary workers can also be an exception to the rule – a technician brought in to fix a security vulnerability, for example, is often well compensated for their efforts. And in some cases, employees receive higher salaries than their direct supervisors due to successful salary negotiations.
Of course, things can get complicated when an employee earns more than their boss. Some managers may find it strange that their employees earn more than they do, and the employee may feel like they are immune to the rules that everyone else has to follow. “But bosses shouldn’t close their minds to the idea that an employee is making more than them,” says Ron Seifert, senior client partner at an executive search firm Korn Ferrytold Assets.
“I would say that a thoughtful and effective leader looks at this and is completely pleased with someone’s exceptional performance and gives them an outsized reward because it benefits the company,” he says. “It makes the leader look smart over time for having someone who performs so exceptionally well.”
Further information about the case can be found above Employee compensation here.
Azure Gilman
azure.gilman@fortune.com
Today’s edition was curated by Emma Burleigh.
Around the table
A roundup of the most important HR headlines.
Some employers believe investing in office art will help lure workers back to in-person work and attract wealthy clients. Financial Times
After a recent positive labor market report, Goldman Sachs believes that a recession is less likely than previously thought. Business Insider
Some workers disappeared when Hurricane Helene devastated a plastics factory in Tennessee, and their families want answers about why they weren’t adequately protected. AP
Water cooler
Everything you need to know Assets.
Golden ticket. A job as an analyst at Goldman Sachs may be one of the most competitive jobs at a company There are over 300,000 out there applying every year, but less than 1% make it. —Luisa Beltran
New normal. Hybrid workers are increasingly eating out on Thursdays and Sundays— While restaurant owners are happy, bosses say these outings are contributing to sluggish days away from home. —Ryan Hogg
On the rise. Black and Latino women are driving the growth of U.S. unionswho fights to close discriminatory pay gaps and working conditions for women and people of color. —Claire Savage, AP
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