Equilar's "Dissecting the CEO Pay Ratio by Sector" shows with relevant Equilar 500 sector and company-specific data why the CEO pay ratio is not useful for comparability across sectors or even across companies with different business models in the same industry in view of the company-specific workforce-related factors that substantially impact the ratio. While many have commented before on the limited utility of the ratio, the post is a timely, substantive reminder to companies, investors, employees, regulators and others to avoid perceptions and presumptions that are not supported by the facts.
Access additional information & resources on our Pay Ratio page. This post first appeared in the weekly Society Alert!