March 6, 2019
Pay Ratio: What UK Companies Are Doing
– Broc Romanek
This ‘Willis Towers Watson’ note shows how companies in the United Kingdom are handling the new “UK Corporate Governance Code & Reporting Regulations.” Here’s an excerpt:
The CEO pay ratio regulations are more flexible than the Gender Pay Gap statistics, giving companies a choice of which method of calculation is most appropriate for them. Our results indicated very little appetite to publish CEO pay ratio statistics early, as at the time the survey fielded, many companies had not yet determined which methodology they would use. Our survey showed that, so far, only 20% of companies have settled on which calculation methodology they will use, but over two-thirds have calculated or are in the process of calculating ratios to test the various methodologies.
80% of companies are considering voluntarily disclosing additional ratios. Amongst the additional ratios being considered are those which will show base salaries only; exclude LTI vesting; use an average single figure and/or illustrate target pay information.