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?