Consumer Perception of Prioritizing Employee Salaries: Paper Summary

Since 1978, CEO pay has grown over 30% more quickly than the stock market itself.¹ And consumers have taken note. The politics of CEO pay came front and cenre during the COVID-19 pandemic, when many businesses were forced to cut costs in order to survive. While some companies prioritized ensuring regular employee pay, millions more were furloughed.¹ How do these decisions impact consumer perceptions of brands?

In a world increasingly driven by corporate dynamics, the decisions a company makes during tough times become emblematic of its values. It can shape the very perception consumers hold of the brand. Recent research has thrown into sharp relief the significance of these decisions, particularly in the complex context of the COVID-19 pandemic.