G4-54



  • ​Report the ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country.



Compilation
For each country of significant operations:
  • Identify the highest-paid individual for the reporting year, defined by total compensation. Define and disclose the composition of the highest-paid individual’s annual total compensation
  • Calculate median annual total compensation for all employees except the highest-paid individual. Define and disclose the composition of the annual total compensation for all employees as follows:
    • List types of compensation included in the calculation
    • Identify whether full-time, part-time, and contracted employees are included in this calculation. If full-time equivalent pay rates for each part-time employee are used, identify this
    • If an organization chooses to not consolidate this ratio for the entire organization, identify clearly which operations or countries are included
  • Calculate the ratio of the annual total compensation of the highest-paid individual to the median annual total compensation for all employees

Depending on the organization’s remuneration policy and availability of data, the following components may be considered for the calculation:
  • Base salary: guaranteed, short term, non-variable cash compensation
  • Cash compensation: sum of base salary + cash allowances + bonuses + commissions + cash profit-sharing + other forms of variable cash payments
  • Direct compensation: sum of total cash compensation + total fair value of all annual long-term incentives (such as stock option awards, restricted stock shares or units, performance stock shares or units, phantom stock shares, stock appreciation rights, and long-term cash awards)
 
Definitions