The Envy/Jealousy Tendency
The envy/jealousy tendency is a deep-seated human drive, evolutionary in origin, that often outweighs greed in motivating behavior. It manifests strongly in competitive environments like universities and investment banks, where perceived inequities trigger intense emotions and social dynamics.
THE IDEA
The Envy/Jealousy Tendency
A member of a species designed through evolutionary process to score food is going to be driven strongly forward in getting food when it first sees food. And this is going to occur often and tend to create some conflict when the food is seen in the possession of another member of the same species. This is probably the evolutionary origin of the envy/jealousy tendency that lies so deep in human nature.
Envy/jealousy is also extreme in modern life. For instance, university communities often go bananas when some university employee in money management, or some professor in surgery, receives annual compensation in multiples of the standard professional salary. In modern investment banks, law firms, etc., the envy/jealousy effects are usually more extreme than they are in university faculties. Many big law firms, fearing disorder from envy/jealousy, have long treated all senior partners alike in compensation, no matter how different their contributions to firm welfare.
As Charlie Munger has shared the observation of life with Warren Buffett over decades, he has heard Buffett wisely say on several occasions: 'It is not greed that drives the world, but envy.'
When to use it
A manager structuring team bonuses to avoid resentment and maintain cohesion.
When analyzing market behavior, consider how envy of others' gains, along with greed, can drive bubbles and panics.
A policymaker considering how public perception of fairness (envy of perceived inequality) affects support for taxation or regulation.
A negotiator recognizing that envy (rather than pure self-interest) may be blocking a deal and addressing it transparently.
FROM THEORY TO EVERYDAY LIFE
In practice
University Faculty Reactions
When a university employee in money management or a professor in surgery receives annual compensation far above the standard professional salary, faculty often react with outrage and jealousy, even if the compensation is market-driven.
Law Firm Compensation Parity
Many large law firms compensate all senior partners equally, regardless of individual contributions, to avoid the disruptive envy and jealousy that would arise from differential pay.
A MOMENT TO REFLECT
Put it to work.
Recall a time when you felt envy at work or in your personal life. How did that feeling influence your decisions or behavior?
In what ways might envy be a more powerful motivator than greed in competitive environments?
How could organizations design reward systems to minimize the destructive effects of envy while still incentivizing high performance?
CONTINUE THE CONVERSATION
Source texts
- The Art of Being Rational Charlie Munger