The negative consequences of pay dispersion in family and non-family top management teams: an exploratory analysis of new venture, high-growth firms

Top management team (TMT) compensation, specifically pay dispersion, is an important organizational issue that may explain differences in family and non-family firms. Pay dispersion within the TMTs of family firms may be more detrimental to team dynamics than pay dispersion in the TMTs of non-family firms. Hypotheses are developed and empirically tested to examine the relationships of horizontal pay dispersion to cohesion, conflict, and group potency in the TMTs of family and non-family firms in high-growth new ventures.