Population Analysis: An Easier Way to Identify Median Employee Pay
With the release of the new pay ratio disclosure rule by the SEC, companies must now disclose the ratio of their CEO’s total annual compensation to that of the median employee. But how do companies determine the compensation of their median employee?
In the April, 2016 edition of workspan, Nathan O’Connor and Josh Schaeffer, PhD explain how sampling methods can be problematic, with material impact to the CEO pay ratio disclosure. They instead advocate for population analysis, which looks at the entire population of employees. Find out why population analysis can be cheaper and more accurate in the long run. Read the article here.
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