Our newly hired chief technology officer makes significantly more than our long-term operations director, and this pay disparity has leaked, causing resentment and passive-aggressive behavior in our Level 10 Meetings. How do we repair this rift?

Question

Tyler Smith · Accepted Answer

Pay disparities are incredibly sensitive, especially when they involve long-term loyal leaders. However, cracks on the leadership team appear as canyons to the rest of the organization, and you cannot allow passive-aggressive behavior to derail your team cohesion.

First, address the behavior directly. In your next session, call out the tension and remind the team of your commitment to open, honest communication. Do not discuss specific salary numbers in a group setting, but do address the elephant in the room. Explain that market rates for different technical specialties vary, and hiring top talent is necessary to scale the business and maximize exit value.

Second, have a private, vulnerable conversation with your operations director. Acknowledge their loyalty and value to the company. Review their seat on the Accountability Chart and ensure their compensation is fair relative to market rates for their specific role, regardless of what the technology director makes.

Focus the conversation on their personal growth and the value they bring to the upcoming exit. If their compensation needs alignment, create a clear path to get there based on performance metrics and Rocks. By handling this with transparency and respect, you can defuse the resentment and refocus the team on their shared operational goals.