Compensation transparency

Wage transparency, salary compensation, and compensation transparency generally, involves disclosure of employee compensation amounts, either among other employees in an organization, to owners, to government regulators, or to the public.

Some jurisdictions have pay transparency laws intended to prevent discrimination based on demographics like gender or race. These laws require job listings to give a salary range for the position. To eliminate unintentional discrimination and treat employees more ethically, some organizations have adopted radical transparency, disclosing all employees' compensation internally and either equalizing pay for similar positions or justifying differences.

Some jurisdictions mandate disclosure of executive compensation to shareholders, in an attempt to reduce excessive compensation.

According to a 2024 review of existing evidence, pay transparency within a firm tends to narrow coworker wage gaps, but also incentivizes employers to bargain more aggressively to keep average wages down. Within-firm pay transparency also reveals to workers pay differences across different levels of seniority, which "can lead to more accurate and more optimistic beliefs about earnings potential, increasing employee motivation and productivity." Cross-firm pay transparency overall strengthens the power of workers against employers, as workers are more likely to seek higher-paying jobs, and negotiate higher pay at their current job.