Issue link: https://digital.shearman.com/i/1019978
Shearman & Sterling LLP CEO Pay Ratio: Perspectives on the First Year and A Look Forward | 15 As expected, the CEO pay ratios varied considerably across industry sectors. This was largely driven by differences in median employee pay across industry sectors rather than by differences in CEO compensation. Among the 11 industry sectors set forth below, the median pay ratio in the consumer discretionary and the consumer staples sectors were considerably higher than those in the other nine industry sectors. This appears to have been largely driven by the relatively lower median employee pay in these sectors as companies in these industry sectors tend to have larger numbers of part- time and temporary employees and full time employees who are paid at or near minimum wage. On the other end of the spectrum, median pay ratios in the energy and utilities sectors were considerably lower than those in the other nine industry sectors, primarily as a result of the relatively higher median employee pay. CEO Pay Ratio By Industry Sector (ranked by Median Pay Ratio) Industry Sector 5th percentile 25th percentile Median 75th percentile 95th percentile Median CEO compensation Median employee pay Consumer Discretionary 84:1 251:1 454:1 774:1 2,532:1 $12,278,000 $28,000 Consumer Staples 91:1 133:1 276:1 475:1 1,010:1 $12,266,000 $48,000 Telecommunication Services 149:1 177:1 212:1 289:1 351:1 $17,947,000 $78,000 Industrials 63:1 129:1 166:1 231:1 379:1 $10,825,000 $61,000 Healthcare 63:1 129:1 166:1 302:1 464:1 $15,389,000 $67,000 Materials 94:1 124:1 163:1 243:1 400:1 $12,972,000 $75,000 Financials 54:1 121:1 159:1 225:1 369:1 $12,693,000 $69,000 Information Technology 30:1 88:1 144:1 243:1 429:1 $11,291,000 $96,000 Real Estate 48:1 88:1 122:1 160:1 296:1 $9,983,000 $76,000 Energy 61:1 85:1 104:1 138:1 267:1 $12,843,000 $121,000 Utilities 52:1 73:1 96:1 124:1 169:1 $12,676,000 $122,000 Industry sector classification is based on the Global Industry Classification System, with data provided by Main Data Group, a division of Pearl Meyer. INDUSTRY INFORMATION