While Dodd-Frank requires that a CEO-to-worker ratio be disclosed in the proxy statement, we may not see that figure in 2012 based on the SEC's recently revised schedule for implementing the various rules its staff has been busy writing and revising.
How do the CEOs of the 100 public companies that make up The Inquirer's survey of executive pay compare with the AFL-CIO's figures?
First, there are significant differences. The local data, prepared by the compensation research firm Equilar Inc., include a mix of companies of all sizes. Plus, while Equilar calculated that the average total pay for 2010 was $7.46 million - less than what the AFL-CIO found - median is a better measure.
The 100 CEOs of companies with significant operations in the Philadelphia area had median total pay of $5.8 million in 2010. However, the median total pay for the local companies rose 11.96 percent from 2009.
That kind of increase for the top dogs relates a disparity in pay levels that Mercer, another consulting firm, recently highlighted. In a survey of more than 1,200 large and mid-size employers, Mercer looked at salary increases for 2011 and projected increases for 2012 by segments of their workforce.
For example, just 8 percent of the workforce is labeled "highest-rated," meaning they're top performers that the organization needs to hold onto. They do that by, you guessed it, paying them more.
Mercer said those 8 percenters that carry the highest rating can expect an average increase in pay of 4.4 percent next year. In contrast, those in the middle, who account for 54 percent of the workforce, would get a 2.8 percent increase, on average. Those considered "low-rated" or "lowest-rated" would receive increases of just 1.2 percent and 0.4 percent, respectively.
