Determine the size of the pay gap

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Reference no: EM133108042

Salesforce.com, Inc. is a successful, for-profit, American cloud computing company based in San Francisco, California. In early 2016, Salesforce.com had a market capitalization of $61 billion, making it one of the most highly valued American cloud computing companies. Salesforce.org, called the Salesforce Foundation, is a tax-exempt, nonprofit 501(c)(3) organization that provides grants, including disaster relief assistance.

Salesforce.org has the following mission statement:

"Salesforce.org is based on a simple idea: leverage Salesforce's technology, people, and resources to help improve communities around the world. We call this integrated philanthropic approach the 1-1-1 model because it started with a commitment to leveraging 1% of Salesforce's technology, people, and resources to improve communities worldwide. By encouraging and enabling companies to adopt the 1-1-1 model, Salesforce.org is helping to spark a worldwide corporate giving revolution."

Compensation is generally lower at Salesforce.org than at Salesforce.com, consistent with the willingness of Foundation employees to sacrifice some monetary compensation in exchange for the opportunity to do work that advances the primary mission.

How should Salesforce determine the size of the pay gap between Salesforce.com and Salesforce.org? To what extent can Salesforce choose this pay gap, given the influences of the external market?

Reference no: EM133108042

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