Pay Ratio Data Compilation by UK Governance Metrics Provider Demonstrates Potential Use Once Disclosure Begins
September 16, 2017
UK governance research service provider Manifest has released a series of tables illustrating how pay ratio data will be compiled and compared once disclosure is required in the US and UK. On its website, Manifest charts the pay ratios for each company, including the number of employees, the CEO’s total compensation, the average employee pay, in addition to both the company’s pay ratio as well as the average sector pay ratio. The exportable data is presented in sortable columns and allows users to quickly compare company pay levels and pay ratios as well as how a company’s pay ratio stacks up to their industry average. In addition, Manifest also offers a list of companies which have high pay ratios and have received say on pay shareholder opposition exceeding 20% - the aptly named “20% Club”.
While not complex, the presentation of the pay ratio data gives some insight into how it would potentially be used and presented after the U.S. disclosure deadline finally goes live. For example, in its policy survey, ISS is exploring, what, if any, pay ratio data should be included as part its say on pay evaluations and an industry-based comparison could find its way into those reports. In addition, the annual pay surveys by the major news outlets could incorporate a similar format as well.