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Compensation  >>   Executive Pay Versus Non-Executive Pay Search Discussion Posts
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Executive Pay Versus Non-Executive Pay  
Posted: 12/17/2010 01:13pm   39 Views

I was wondering in anyone knows of any recent studies which compare average executive pay to average non-executive pay. I know a company who is looking at the ratio between the two and wants to compare its ratio to those of other companies.

Thank you.


Executive Pay Versus Non-Executive Pay  
Posted: 12/17/2010 01:34pm  

Not really.  The Conference Board reports top executive pay in terms of ratios to the CEO pay.  Reinsurance Management Associates (formerly Robert Morris Associates and still called RMA) reports total officer compensation as a ratio of sales by industry from financial statements filed with banks and lenders, as does the Prentice Hall Almanac of Financial Ratios.  All of those produce annual reports, but the Almanac is more tardy than the others since it uses redacted IRS tax return files and is far more comprehensive than the other ratio reports, covering every business tax return.  Be aware that while top executive compensation must be publicly reported in proxies and Form 990s, there is no such overt exposure requirement for other executive positions or for any jobs at private enterprises.  Size of total payroll is a jealously hoarded closely-kept secret at most employers and is rarely openly disclosed, as a company-confidential metric.  In addition, organizational structure and the degree of automation, outsourcing, contracting, temp usage, and such can further complicate your payroll number definitions and meanings .  The bigger issue would be the comparability of your absolutes for the ratio inferences:  simply defining "executive" and "non-executive" pay is highly problematic, and averages will be affected by sample size and outliers.  AFL-CIO publishes such ratios, too, as an aid to organization drives. 

Industry associations may be your most useful information sources.

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