Most bosses have a better wage than their staff. However there are exceptions to the rule.
In sports activities, for instance, a star participant usually earns greater than their coach. And within the movie trade, A-list actors take residence larger paychecks than the director.
So when does it make sense for an worker to earn extra than their boss? Once they’re delivering a highly-valued and specialised talent set, writes my colleague Natalie McCormick. That features Kansas Metropolis Chiefs quarterback Patrick Mahomes, who earns round $20 million extra per yr than his coach Andy Reid. And it additionally consists of Nick O’Kane, the previous commodities head of Australian financial institution Macquarie, who earned round $28 million extra than the CEO over a two-year interval.
However not all cases of topsy-turvy compensation want to incorporate eye-watering sums of cash. Within the tech world, staff with highly-specialized expertise usually earn greater than their bosses. And star gross sales individuals, who work on fee, will usually take residence heftier paychecks than their managers after a blockbuster yr. Momentary staff may an exception to the rule—an engineer introduced in to repair a safety breach, as an example, will usually be properly compensated for his or her efforts. And in some instances, staff find yourself with increased paychecks than their direct managers due to profitable wage negotiations.
To make certain, issues can get difficult when a employee earns greater than their boss. Some managers would possibly really feel odd about their staff incomes greater than they do, and the worker might begin to really feel that they’re immune from the principles that everybody else should observe. However bosses shouldn’t shut themselves off to the thought of an worker incomes greater than they do, Ron Seifert, a senior shopper companion at government recruiting agency Korn Ferry, tells Fortune.
“I would say that a thoughtful and effective leader will look at that and be totally delighted with somebody’s exceptional performance, producing an outsized reward for them because it’s to the benefit of the organization,” he says. “That over time makes the leader look smart for having somebody who performs so exceptionally well.”
You possibly can learn extra concerning the case for increased worker compensation right here.
Azure Gilman
azure.gilman@fortune.com
Right this moment’s version was curated by Emma Burleigh.
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