The best frontline managers’ pay only reflects 0.5% of the value they create

Frontline managers’ pay does not reflect their personal contribution to a firm’s profits. They capture only 0.5% of the value created, as opposed to 25–60% for more visible occupations such as CEOs, salespeople and realtors, according to a recent study by Arnaldo Camuffo from the Bocconi Department of Management and Technology and Federica De Stefano of HEC Paris and Matthew Bidwell from Wharton.

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