management pay ratios

Management pay ratios compare the compensation of a company's top executives to that of its average employee. This ratio highlights how much more top leaders earn relative to their workforce, providing insight into income distribution within the company. For example, a ratio of 300:1 means a CEO earns 300 times what an average employee makes. Such ratios can vary widely and help stakeholders understand executive pay practices, promote transparency, and assess if compensation is aligned with company performance and employee welfare.