Why tech companies tend to be more profitable

There is a growing body of research that shows that companies that limit their high-low wage ratios and distribute generous option plans consistently outperform more traditional, inegalitarian firms. Companies that flatten hierarchies and distribute rewards more fairly are actually more profitable, and not just nicer places to work. They don’t need high-flying IPOs to do this; simply flattening the ratio of executive-to-average-worker-pay creates similar benefits.


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