Why Visier

‹ Return to company news

New Visier People Capability Simplifies Calculation of CEO Pay Ratio, Saving Public Companies $100,000+ in Consulting Fees

Vancouver, BC and San Jose, CA |

Visier People’s delivers pre-built metrics for CEO Pay Ratio and Median Employee Pay

Visier, the recognized leader in people analytics and planning, today announced a powerful new capability in the latest quarterly release of its Visier People® solution. The newest release of Visier People enables public companies to more easily meet new US government CEO Pay Ratio disclosure requirements,  with pre-built metrics for CEO Pay Ratio and Median Employee Pay.

Starting this year, public companies in the US are required to disclose new details on compensation in their annual proxy filings. This mandate from the 2010 Dodd-Frank Act requires companies to report CEO compensation, median compensation of their employees, and the ratio between the two numbers – known as the CEO Pay Ratio.

“The challenge of determining the CEO Pay Ratio is affecting organizations on two fronts: the efforts and costs of calculating it, and the optics of disclosing it,” said John Schwarz, Visier Founder and CEO. “In addition to saving companies a sizable expense associated with calculating this metric, Visier People provides leaders with a clear view of their workforce reality, enabling them to assess and prepare for the likely impact of the disclosure.”

The practical efforts of calculating and communicating CEO Pay Ratio and Median Employee Pay metrics is proving to be a complicated and expensive task for companies. This complexity is due to several factors, including the presence of employee data in disparate pay systems; the wide variance in pay packages across employee categories; and the complexity of running calculations across millions of rows of data and determining the median of all of these separate data points. This task is beyond the capabilities of traditional Human Capital Management systems.  According to research, these challenges are costing organizations $100,000 or more per year in consulting fees to produce the number they need to report.

New Median Employee Pay and CEO Pay metrics enable Visier People customers to calculate the ratio for their submission with a single click–-no expensive consultant required.


Strategic Communication of CEO Pay Ratio with Visier People Data Journalism

Visier People also enables organizations to more strategically communicate their CEO Pay Ratio by including context behind the number. For example, by including a breakdown of the type of employee, including seasonal and part-time employees, earnings by month, and compensation by job and using powerful data visualizations to illustrate these numbers, organizations can better explain the realities of their workforce and labor costs.  Each additional visual can be prefaced with an introduction so that the viewers are able to understand the bigger picture better.