Fairness in compensation is often subjective, but there is a notable perception that current wage disparities are unjust. Many workers feel that when executives advocate for pay cuts or layoffs claiming the need for corporate competitiveness while simultaneously raising their own salaries, it creates a strong sense of inequity. This imbalance can lead to significant discontent among employees.

Such perceived unfairness can negatively impact employees' motivation, loyalty, and cooperation within the company. Workers may become less inclined to invest in the organization's future when they feel treated unfairly. This situation exemplifies the broader issues discussed by Joseph E. Stiglitz regarding inequality and its implications for society.