Last year, Boeing’s CEO David Calhoun was grilled by the U.S. Congress after a series of safety failures — corners cut, whistle-blowers silenced, paperwork fudged.
And then the headlines dropped: his pay jumped 45 %, while many of Boeing’s machinists received just a 1 % raise.
That’s not just a PR disaster — it’s a leadership crisis. Because when leaders reward themselves while frontline people barely move the needle, they’re not building companies — they’re eroding trust, purpose, and community.
Here’s the truth: organisations don’t just steer profits and strategy — they shape lives. Every pay decision impacts someone’s sense of safety, their health, their kids’ opportunities.
Research shows income and well-being are inseparable. A meta-analysis in The Lancet Public Health found that when incomes rise, people’s mental health and life satisfaction improve measurably. (The Lancet, 2022) Another study in BMC Public Health confirmed that adequate income boosts both mental and physical health — because financial safety is the foundation for human security. (BMC Public Health, 2025)
Financial stress is a major driver of chronic illness, anxiety, and burnout. When people are paid enough, their bodies calm down, creativity returns, and they can breathe again.
And inequality? It’s terrible for business. When CEOs pocket massive raises while staff scrape by, the fallout is predictable:
- Trust evaporates.
- Morale tanks.
- Turnover spikes.
- Productivity and innovation collapse.
A 2022 Frontiers in Psychology meta-analysis found that perceived pay fairness directly lifts performance and engagement. (Frontiers in Psychology, 2022) Fairness isn’t a soft metric — it’s a growth strategy.
Focusing on the impact your business creates — fair pay, safe workplaces, quality outcomes, purpose beyond profit — strengthens both performance and community. Research from the OECD shows that companies addressing wage inequality can improve national welfare by up to 25 % of income. (OECD, 2023)
Boeing eventually changed course: half of its executive bonuses are now tied to safety and quality, and machinists secured a 38 % pay rise over four years.
But let’s be honest — it shouldn’t take a congressional inquiry, strikes, or falling stock prices for leaders to wake up.
Leadership isn’t just about results — it’s about responsibility. When we reward fairly, we don’t just build better businesses — we build better communities.
