Should a Boss Makes Less Than Employees?

A. It doesn't happen often, but from time to time a supervisor may make less money than an employee who reports to him or her. When an employee earns more than his or her supervisor, it is normally because the employee's technical skills are worth more than those of the supervisor.

How much more should a manager make than their employees?

Influential management consultant Peter Drucker once maintained to the Securities & Exchange Commission that the CEO pay gap should be no more than 20 to 25 times average worker salaries. Executive compensation higher than this leads to low worker loyalty and poor motivation.

Can a boss makes less than employees?

1. Is the California Equal Pay Act new? No, for decades now, the California Equal Pay Act has prohibited an employer from paying its employees less than employees of the opposite sex for equal work.