Its an indisputable fact that there has been an explosive increase in the difference between the average U.S. workers income and those of senior executives. In 1980 the average CEO made 42 times the average blue-collar workers pay. In 1990 it was 85 times. In early 2000s it had risen to 531 times. In 2008 it was still rising but the severe recession of 2009 reduced the difference and after has generated some serious questions about executive compensation but gap is back to enlarging since 2014. What are the implications of executive compensation for motivation of the general workforce in organizations? For Executives?