CEO Pay Ratio: Ratios in Context

This Client Briefing looks at pay ratios for 2016. The ratios were calculated using: (1) compensation data for the CEO as reported in 2017 proxy statements, and (2) the U.S. Department of Labor's Bureau of Labor Statistics (BLS) information on weekly earnings for the 4th quarter of 2016, annualized ($43,992). 

The Client Briefing reports median 2016 CEO annual total compensation by index and industry, allowing companies to use their own estimates of median employee total compensation for their industry to calculate a more relevant estimated ratio.

Note: The CEO Pay Ratios contained in this Client Briefing were calculated using the BLS median annual compensation for a U.S. worker of $43,992 for 2016. As a result, the ratios may not reflect the ratios that will be disclosed in 2018 proxy statements for (1) companies with median employee annual total compensation significantly above or below the BLS amount, and (2) companies with a large global employee workforce such that their median employee is not based in the U.S.

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