The foremost purpose of the paper was to explore the relationship between the Pareto Principle and employees' compensation. The study was quantitative and 330 leaders were surveyed at the public and private universities of Lahore District. The instrument consisted of 52 items with the Cronbach alpha of 0.94 was used to collect data from the leader regarding the Pareto Principle and employees' compensation.Through multistage sampling technique, 330 top and middle-level leaders participated in the survey. The results of the survey revealed a significant positive association (r=0.876) between Pareto law and employee compensation.