Global Reporting Initiative+Highest paid worker to median worker pay ratio (G4-54)+methodology
To calculate 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) in the same country - G4-54:
- Identify the highest-paid individual for the reporting year, defined by total compensation
- Calculate median annual total compensation for all employees except the highest-paid individual
- Calculate the ratio of the annual total compensation of the highest-paid individual to the median annual total compensation for all employees
Depending on the organization’s remuneration policy and availability of data, the following components may be considered for the calculation:
- Base salary: guaranteed, short term, non-variable cash compensation
- Cash compensation: sum of base salary + cash allowances + bonuses + commissions + cash profit-sharing + other forms of variable cash payments
- Direct compensation: sum of total cash compensation + total fair value of all annual long-term incentives (such as stock option awards, restricted stock shares or units, performance stock shares or units, phantom stock shares, stock appreciation rights, and long-term cash awards)
For WikiRate Researchers:
- Please see this page for guidelines on how to research values for GRI-based metrics.