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View Full Version : My CEO shared our salary information with all staff


igla
Aug 16, 2012, 03:04 PM
My boss sent all staff a document that contained all staff salaries. When I asked why and how, she was furious with me and never apologized.
What are my rights?

JudyKayTee
Aug 16, 2012, 03:07 PM
My boss sent all staff a document that contained all staff salaries. When I asked why and how, she was furious with me and never apologized.
What are my rights?


Is there anything written about confidentiality in a contract, an employment agreement, an employee handbook... and who received the information and for what purpose?

I don't find this terribly unusual. What industry?

joypulv
Aug 16, 2012, 03:11 PM
There is no 'right' to salary confidentiality unless it's company policy.
She was furious? I suspect that you did more than just ask why or used a demanding tone.
She didn't apologize? I suspect that you might want to apologize or your job may be short lived.

igla
Aug 16, 2012, 03:25 PM
Why I should apologize for asking why she sent private information out to all?
Isn't that a reasonable question?
She was furious because she has a temper issue and does not like to be questioned.

JudyKayTee
Aug 16, 2012, 03:26 PM
Why I should apologize for asking why she sent private information out to all?
Isn't that a reasonable question?
She was furious because she has a temper issue and does not like to be questioned.


Please answer my questions.

Why you should or shouldn't apologize depends on company policy and the other questions I asked you. I have no idea of it's a reasonable question or not at this moment in time.

igla
Aug 16, 2012, 03:28 PM
Is there anything written about confidentiality in a contract, an employment agreement, an employee handbook ... and who received the information and for what purpose?

I don't find this terribly unusual. What industry?

Non-Profit. Very small shop. She, boss, is interim.

An added facet of the shared info was exposing a very huge discrepancy in pay for one staffer. The person was hired in by an old CEO who had more than professional interests in her. She has been kept in her job by two helpful coworkers-who now know they are earning thousands less than this person who should never been hired.
Fun:)

igla
Aug 16, 2012, 03:29 PM
Please answer my questions.

Why you should or shouldn't apologize depends on company policy and the other questions I asked you. I have no idea of it's a reasonable question or not at this moment in time.

I have no idea what our company policy is on salary confidentiality. It is a good question and I shall research it.

igla
Aug 16, 2012, 03:32 PM
Is there anything written about confidentiality in a contract, an employment agreement, an employee handbook ... and who received the information and for what purpose?

I don't find this terribly unusual. What industry?

All staff received this information on a budget sheet.
Thanks

JudyKayTee
Aug 16, 2012, 03:44 PM
All staff received this information on a budget sheet.
Thanks


Find out why and what company policy is and come back and let's see what you can do. I assume the information was embarrassing to you?

igla
Aug 16, 2012, 03:53 PM
Find out why and what company policy is and come back and let's see what you can do. I assume the information was embarassing to you?
Thank you for your help. The information wasn't embarrassing for me. It would be embarrassing for the person making the high income because they now know that we know {I am sure the person had no idea they were making a lot more than others} and we all know this person should never have been hired in the first place... had no experience or skills in the job they were put into -----so now to see the salary they were hired in at, it has created a bit of a rift in a very small staff. It is not based on ability, experience, or seniority. This person is costing us money and that being known (as we struggle to raise money) is not going away.

JudyKayTee
Aug 16, 2012, 04:16 PM
Thank you for your help. The information wasn't embarrassing for me. It would be embarrassing for the person making the high income because they now know that we know {I am sure the person had no idea they were making a lot more than others} and we all know this person should never have been hired in the first place....had no experience or skills in the job they were put into -----so now to see the salary they were hired in at, it has created a bit of a rift in a very small staff. It is not based on ability, experience, or seniority. This person is costing us money and that being known (as we struggle to raise money) is not going away.


Just being objective here - this person is costing "us" money?

Do you own an interest in the company?

If you have the ability to take action about this, decide to take action over this, you are going to have to be very careful not to sound vindictive or jealous or ___ fill in a word.

What is the concern now that this person is making more than other employees?

igla
Aug 16, 2012, 04:17 PM
Find out why and what company policy is and come back and let's see what you can do. I assume the information was embarassing to you?

I checked our HR manual and there is nothing there about confidentiality-about anything.
I think the bigger issue is what this exposure exposed and the bad staff morale that is now in place. Our ceo is also our HR person and she clearly does not want to revisit this matter.

JudyKayTee
Aug 16, 2012, 04:18 PM
I checked our HR manual and there is nothing there about confidentiality-about anything.
I think the bigger issue is what this exposure exposed and the bad staff morale that is now in place. Our ceo is also our HR person and she clearly does not want to revisit this matter.


And, again, other than being an employee, what is your interest?

joypulv
Aug 16, 2012, 04:21 PM
From dirt diggers digest 2008:

"Currently, non-profits must disclose the compensation of officers, board members and “key employees” (such as an executive director) as well as the pay of the five highest-paid employees who do not fit those categories and who earn above $50,000. The IRS, which oversees non-profits, now wants non-profits to reveal the names and salaries of up to 20 key employees (more broadly defined) earning more than $150,000 as well as the five-highest paid other employees earning above $100,000."

Salaries must be stated on IRS form 990 and are available to the public through various sites, so it isn't even in house you need to be worried about.

The purpose is to encourage watchdogging of bloated salaries at non profits.

igla
Aug 16, 2012, 04:21 PM
Just being objective here - this person is costing "us" money?

Do you own an interest in the company?

If you have the ability to take action about this, decide to take action over this, you are going to have to be very careful not to sound vindictive or jealous or ___ fill in a word.

What is the concern now that this person is making more than other employees?

The issue is fairness. This person, with zero experience or skills for the job earns more than any staff person has ever earned and it is because the boss at the time had non-professional hopes for the new employee.
Thank you for your help.

igla
Aug 16, 2012, 04:23 PM
From dirt diggers digest 2008:

"Currently, non-profits must disclose the compensation of officers, board members and “key employees” (such as an executive director) as well as the pay of the five highest-paid employees who do not fit those categories and who earn above $50,000. The IRS, which oversees non-profits, now wants non-profits to reveal the names and salaries of up to 20 key employees (more broadly defined) earning more than $150,000 as well as the five-highest paid other employees earning above $100,000."

Salaries must be stated on IRS form 990 and are available to the public through various sites, so it isn't even in house you need to be worried about.

The purpose is to encourage watchdogging of bloated salaries at non profits.

This is helpful, I forgot about 990s. Hmmm... I wonder if anyone would ask what that one person does to earn a lot more than everyone else.
I appreciate your help. Thanks

JudyKayTee
Aug 16, 2012, 04:34 PM
From dirt diggers digest 2008:

"Currently, non-profits must disclose the compensation of officers, board members and “key employees” (such as an executive director) as well as the pay of the five highest-paid employees who do not fit those categories and who earn above $50,000. The IRS, which oversees non-profits, now wants non-profits to reveal the names and salaries of up to 20 key employees (more broadly defined) earning more than $150,000 as well as the five-highest paid other employees earning above $100,000."

Salaries must be stated on IRS form 990 and are available to the public through various sites, so it isn't even in house you need to be worried about.

The purpose is to encourage watchdogging of bloated salaries at non profits.


Joy, where did you read that OP works for a not-for-profit? What did I miss?

ScottGem
Aug 16, 2012, 04:59 PM
Joy, where did you read that OP works for a not-for-profit? What did I miss?


Non-Profit. Very small shop.

Let me tell a story. My first full time job was with a loan company. This company had a VERY specifically defined salary structure. Everyone started in an entry level position making the same salary. As you rose, raises were defined so up to a certain point everyone knew what the others were making based on their position.

I moved on to another company that was being moved from MI to NY. So a totally new staff was hired because the MI staff didn't want to move. We were flown out to Lansing Mon mornings and back Fri evening. Almost all the staff were 20 something's so we often when out to dinner and socialized in the evening. At one of these dinners I casually mentioned my salary because I thought everyone knew. Of course some people got bent out of shape because I was making more than them. I learned that revealing salaries was a corporate taboo. But I also learned this is due to custom and sensitivity, NOT law.

The CEO may have thought that she was complying with IRS regs by revealing the salaries. Or it may just have been a stupid oversight and your reminding her of her faux pas is what angered her.

Bottom line, while it was a mistake to do so because of the fallout it has caused, there is no law or rule that prohibits it. A company can publish salaries if they so choose. Union people work under contracts that specifically define wages so they know what others are making. So, in some industries and types of companies, it is not uncommon for salary structures to be public.

So the CEO let the cat out of the bag and she will need to deal with the repercussions of her actions. Her actions were not illegal. You have NO right to privacy here. This was corporate info and the CEO can do with it as she pleases. You may have jeopardized your job by questioning her about it. She owes no one an apology.