The relationships among organizational context, pay dispersion, and managerial turnover

Relatively little research explores observed differences in pay dispersion across organizations and whether those observed differences have consequences for employee behaviors. Using data from two managerial compensation samples, we found that an organization's context-its environment and diversification strategy-is related to differences in pay dispersion across firms. We also found that pay dispersion within an organization is related to the tenure of managers and the likelihood of their leaving the organization.