Fair500

Fair500 → Analysis

Analysis

Pieces on what the pay-ratio disclosures show across the index, and, just as often, what they don't.

Fair500 compiles four figures for 494 S&P 500 companies from their own SEC filings. These articles work through what those figures support, what they don't, and where the obvious reading of a number turns out to be wrong.

Understanding the disclosure

What the CEO pay ratio actually measures

The Dodd-Frank rule that produced the number, the five significant choices it leaves to companies, and the three things it leaves out entirely.

Start here

The widest pay ratios are mostly a story about the denominator

Among the 25 widest ratios in the index, CEO pay sits at the 72nd percentile and median worker pay at the 10th. The extremes are made at the bottom of the fraction.

The most important caveat on this site

Why one year of CEO pay tells you almost nothing

Broadcom's disclosed CEO compensation ran $161.8M, then $2.6M, then $205.3M in consecutive years. Why Fair500 averages over three.

Methodology, argued

How to read a Summary Compensation Table

A practical guide to the table where executive pay lives, column by column, how to verify a total, and the two traps that produce wrong answers.

For anyone checking our work

What the data shows

The widest CEO-to-worker pay gaps

The 25 largest gaps in the index, and the three quite different phenomena that produce them.

Ranked list · 3,669:1 at the top

The narrowest pay gaps, and what they mean

Four routes to a small ratio, only one of which resembles what most people mean by a fair employer.

Ranked list · 23:1 at the top

Where the best-paid workforces are

The highest median employee compensation in the index, and why a high median says more about hiring than generosity.

Ranked list · up to $388,200

Profit per employee: the widest range in the index

From under $2,000 to over $95 million per head. What that spread reveals, and why it reframes the question of worker pay.

Ranked list · four orders of magnitude

Reference

Methodology

Sources, formulas, the three-stage verification process, and four limitations that should temper how far you push the data.

Sector breakdowns

All eleven sectors, each with its full company list. Within-industry comparison is far more defensible than an index-wide league table.