Survey: CEO-to-employee pay ratios not all created equal.

| September 29, 2016

Survey: CEO-to-employee pay ratios not all created equal.
When the Securities and Exchange Commission announced its new CEO Pay Ratio rule in 2015, much hand-wringing by affected employers followed, Now, a survey from Mercer has found that CEO-to-median-employee pay ratios are expected to be less than 200:1 at the majority of surveyed companies - much lower than the 300:1 ratios frequently publicized in the post-rule disclosure atmosphere. Beginning in 2018, all publicly traded employers will have to disclose the ratio of the CEO’s total pay to the median total pay of all US and non-US employees. While the 2018 effective date may seem a long way off, according to Mercer’s survey of 117 employers across 12 industries, three-quarters of companies have already selected or are considering one or more calculation methods for determining the median employee.

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The employment contract is a required document in Europe, and an important one. Getting your head around the regulations, plus the existing cultural expectations, that need to be incorporated into such a contract can be a daunting task. However, doing a little due diligence will make it much easier.


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Spotlight

The employment contract is a required document in Europe, and an important one. Getting your head around the regulations, plus the existing cultural expectations, that need to be incorporated into such a contract can be a daunting task. However, doing a little due diligence will make it much easier.

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