"In a recent study published by the Academy of Management Journal, Prof. Peter Bamberger of Tel Aviv University's Recanati School of Business and Dr. Elena Belogolovsky of Cornell University's School of Industrial and Labor Relations have published a study that explains why pay secrecy is likely to hurt an individual's work performance and prompt top talent to seek new employment. They conclude that pay secrecy weakens the perception by employees that a performance improvement will be accompanied by a pay increase. It also finds that high-performing workers are more sensitive than others when they perceive no link between performance and pay; suggesting that pay secrecy could limit a company's ability to retain top talent."
So who, if anybody, benefits from pay secrecy?
True, but that is a fine line to walk. Keep your salaries too low and your employees will quickly look for jobs elsewhere. Also, I am much more likely to go above and beyond for an employer that is going above and beyond for me. So I believe, in some ways, taking care of your employees is taking care of the company.
It sounds like he's describing the current short-term "MBA driven" approach.