Biblioteca de métricas unificadas - CEO pay rate

Pregunta de ayuda

What is the ratio of the annual total compensation for the highest compensated individual to the median annual total compensation for all employees, during the period?

Resumen

The organisation must report the ratio of the annual total compensation for the organization’s highest-paid individual to the median annual total compensation for all employees(excluding the highest-paid individual).

Unidad

%

Descripción

The CEO pay rate aims to ensure that organizations have fair pay structures and it provides insights into the level of income inequality within the organization, specifically focusing on the compensation of top management compared to the rest of the workforce. Annual total compensation includes salary, bonus, stock awards, option awards, non-equity incentive plan compensation, change in pension value, and nonqualified deferred compensation earnings provided over the course of a year.

Regulatory Definition

According to the (EU) 2022/1288 of 6 April 2022, the metric is defined as "Average ratio within investee companies of the annual total compensation for the highest compensated individual to the median annual total compensation for all employees (excluding the highest-compensated individual)".

Cálculo

Ratio = "CEO annual compensation" / "Median annual compensation" xx 100

Fuentes

Ejemplos

If you have a designated CEO pay rate within your organisation, it should be disclosed in comparison to the rest of the workforce. For instance, CEO X’s annual total income is 10 Million EUR. The median value of the annual compensation of all employees (excluding the CEO) is 60,000 EUR. Excessive CEO Pay rate would be 10,000,000 / 60,000 = 166.67 %