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ARTICLE · 26 MARCH 2018

Are Pay-Ratio Disclosures Misleading?

As I noted in this recent blogpost, a survey conducted by Compensation Advisory Partners LLC of pay-ratio disclosures from 150 companies with a median revenue of $2.1 billion ...

United StatesEmployment and HR

As I noted in this recent blogpost, a survey conducted by Compensation Advisory Partners LLC of pay-ratio disclosures from 150 companies with a median revenue of $2.1 billion showed that, as of March 9, 2018, the lowest ratio was 1:1 and the highest was 1465:1. What? 1:1? How did that happen? For one explanation, I refer you to this column from Bloomberg's hilarious Matt Levine, part of which I quote below:

"Berkshire Hathaway Inc.'s Warren Buffett is scoring particularly well on a new rule requiring companies to disclose the ratio of a chief executive officer's pay to that of the median employee. His annual compensation of $100,000 was just 1.87 times the median employee's pay of $53,510, a figure calculated from a sample of about two-thirds of Berkshire's total employees, according to a filing released Friday. He also gives back about $50,000 to the company 'for minor items such as postage or phone calls that are personal,' meaning his take-home pay would be

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