CEO Salary Confidentiality Breach - CiteHR
Ash Mathew
Recruitments, Training`
Hr And Operations
Prof X
Nursing Administration & Management,
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Training & Development
+3 Others

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We have a situation where the accountant has revealed CEO salary to many employees which has created a lot of unrest and gossip within the organization. How could we avoid this from happening in the future?
Dear Manukarnika, I believe there is a policy in the appointment letter that states that "the salary would remain confidential to everyone and NO one would discuss it" Also - you must have discussed with the accountant, much in adnavce that he is not supposed to reveal any information (whether confidential or not) to any employees, other than to those who he is entitled to - regardless of the position. He should be called in and asked for explaination. Please dont give any space for him to give excuses. And clearly orient everyone on the basic employee guidelines and what is expected. Highlight that at no cost the salary details are to be revealed to anyone, and no one is supposed to be showing interest in knowing such information about others. Anyone found doing so in future - would be facing disciplinary actions on immediate basis, with no space for excuses. ANd abt the Accountant - Pls be careful about giving him extra load of work. Becuase it may not just be the salary of the CEO, but also other crucial information what he might have revealed. He needs to oriented once again on the basic ethics expected out of his work, the failure of which he can decide whether he choses to continue or not. Handle this with less emotions but with a very stern message to everyone. People would stop the gossip and return to whats more impt - "work"
Hi Manukarnika, Kindly inform the accountant not to reveal any ones salary no matter which ever grade.. This is an area which is very sensitive... By the way y r the people very unrest & gossip??? If he is a CEO of the orgnzn he deserves it... What wud be the strength of the orgnzn yaar??????????
Thanks Asha and Arjun. We currently have 26 employees. The organization is very flat and our CEO moves freely with all employees and the organization encourages a friendly, yet professional atmosphere. The fact that the accountant was revealing sensitive information (in spite of having been told about the need for confidentiality on all matters) to employees came to light when an employee fired for lack of performance made a scene while exiting.
Dear Manu, While exiting under such a scenario, people tend to show their anger/frustration. their thinking process is : "Why are you terminating me - after all I am only getting so much salary - and you are ready to pay the CEO so much - cant you adjust with my salary? Why me?" This is their thinking process (cant blame them - because under a survey the two major reaosns for depression and loss of peace is a) Lose of a close relative/freind through death b) Loss of job ) Please highlight that it is not the salary - but just the peroformance did not match what this company expected. He may be an asset to another company who would be able to use his skills in a much useful way - but unfortunately his skills do not match the current performance requirment. let him know that only a positive refernce will be given about his work, and no one will be told that he was terminated. Its common for people to feel bad and make such statements while in depression. And the accountant : handle him and ask him what made him reveal those information. Under no circumstances the salary the company pays to any employee must be linked with someone else's termination. Let him know it was not cost-cutting - but performance monitoring that caused his loss of job.
dismiss the accountant citing breach of confidentiality and secrecy. let the guy be know this and also penalise him for this. anyone is entitled to privacy and confidentiality.
Sack the accountant..... It will set an example on confidentiality & secrecy for others... Regds, Venky
I agree with the two gentleman suggesting the dismisal of this accountant. For all we know he has (I am sure) signed a confidentiality aggreement and is most often reflected in his job description regarding what the company expect of him... His action in divulging the CEO salary has clearly violate the said code. On the other hand, this mandate will echo justice and fair judgement on the part of administrative level....His actions are set to be as an example for all... needless to say this is something the company has to think over.. Dismissing someone would not solve the unrest and gossip yet sometimes might aggravate. The clear action and judmental decission on this matter place a crucial role on all staff miliue.
It seems that the accountant is purposefully revealing the confidential matters to other employees. It is not because of his ignorance. Since he knows the salaries of all employees, he might be trying to create an unrest among the low paid employees by revealing the salaries of highly paid employees, so that they may demand for salary hike. If their demand is accepted, the accountant can also expect a salary hike and at the same time, be in the good book of management. He seems to be either a very clever guy or a stupid. As per my opinion, he is not fit for his job.
Well it depends on the type of company you work for. If the company is public, then the CEO & other board members salary is anyways public - so no big deal. On the other hand if you work for private company then the founder (if he is not CEO) should have agreed to pay the CEO the salary, so others should just mind their own business. If the CEO is founder (in a private company) then again he knows what he wants to do with the company and he will most likely take least salary and increase the assets of the company to get a better value of his company in the long run. So again no big deal.

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