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Just Like My CEO: When Perceived Similarity Makes Pay Inequality Acceptable
Daniel Heller1, Garrett L Brady2, M Ena Inesi3
1Tel Aviv University, Israel.
Personality & Social Psychology Bulletin
|June 4, 2026
Summary
Employees may accept large CEO pay gaps when they feel similar to their CEO, leading to increased inspiration. This research explains why extreme pay disparities are often tolerated, despite societal inequality concerns.
Area of Science:
- Organizational Behavior
- Social Psychology
- Economics
Background:
- Large CEO-employee pay gaps are common, yet public resistance is limited.
- Existing research often focuses on negative reactions to pay inequality.
Purpose of the Study:
- To investigate the conditions under which pay inequality may elicit positive employee reactions.
- To propose and test a social comparison perspective on CEO pay acceptance.
Main Methods:
- Conducted a large international archival survey.
- Administered pre-registered surveys to U.S. employees.
- Performed two pre-registered experimental studies.
Main Results:
- Perceived similarity to CEOs reduced support for income-inequality-reduction policies.
- Employees perceiving greater similarity to CEOs showed higher acceptance of CEO pay.
- This acceptance was driven by increased feelings of inspiration.
Conclusions:
- Perceived similarity to CEOs can foster inspiration, leading to greater acceptance of high CEO pay.
- These findings help explain the limited resistance to historic CEO-employee pay gaps.
- Understanding these mechanisms is crucial for addressing broader societal inequality.
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