Abstract
Top management team (TMT) compensation, specifically pay dispersion, is an important organizational issue that may explain differences in family and non-family firms. Pay dispersion within the TMTs of family firms may be more detrimental to team dynamics than pay dispersion in the TMTs of non-family firms. Hypotheses are developed and empirically tested to examine the relationships of horizontal pay dispersion to cohesion, conflict, and group potency in the TMTs of family and non-family firms in high-growth new ventures.
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