Shwo the organizations and high salaries

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Reference no: EM1347141

Organizations and high salaries

Some organizations structure executive compensation so that executives can receive amounts ranging from hundreds of thousands of dollars to millions. Moreover, it's not uncommon for organizations to terminate or lay off large numbers of employees AND to give top executives big bonuses during the same year.

1. Will organizations justify high salaries while firing or laying off large numbers of employees?

2. Explain what role does equity theory play in executive compensation and employees' perceptions of executives' pay?

Reference no: EM1347141

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