CEO PAY UPDATE

The CEO pay ratio is computed by the median employee’s remuneration. The CEO pay ratio allows the board to analyze how their company’s pay ratio compares to similar companies, and significant changes in the company’s policies in the past.

The SEC mandates that companies calculate compensation using a consistent measure, which may be base pay, bonus, equity, or any combination of the two. Companies may also use W-2 wages.

The actual ratio, unskilled worker to CEO is 10:1, based on these series of regulations. Actual pay works out to be whatever mix of these factors the board chooses to use to calculate CEO pay.

Effectively, this means the board can manage these regulations to pay what the the board and the CEO decide are the appropriate factors to achieve an actual CEO’s pay. Last year a big three auto maker CEO made north of $20,000,000 a year, one made close to 30.

9/12/23

9/15, a strike of the 3 largest US automakers, they’re at the bargaining table.