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Pay Equity Analysis
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Overview

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Pay Equity Analysis evaluates how a company systematically assesses and addresses differences in compensation across demographic groups - such as gender, race/ethnicity, age, disability and other protected characteristics - to ensure fair and non-discriminatory pay practices. It covers:

  • data collection & normalization – aggregation of base salary, bonus, equity and total-cash compensation data, adjusted for job level, function, geography and performance to enable meaningful comparisons;
  • statistical methodologies – use of regression analysis, adjusted median/mean comparisons and pay-gap metrics (unadjusted and adjusted) to isolate pay disparities not explained by legitimate factors;
  • remediation processes – action plans for correcting identified gaps, including retroactive adjustments, budget allocations, policy changes and integration into salary-review cycles;
  • governance & accountability – board or remuneration-committee oversight of pay-equity policies, regular reporting of findings, and linkage of leadership incentives to closing gaps;
  • transparency & disclosure – public or stakeholder reporting of pay-gap statistics, analysis methods and progress toward equity goals, aligned with frameworks such as GRI 405-2, the EU Pay Transparency Directive and best-practice guidance from WEPs and relevant human-rights standards.

Subtopics

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