Highest-paid individual to median employee annual remuneration ratio
Measurement answer
What this metric measures
Ratio of the annual total remuneration of the reporting undertaking's highest-paid individual to the median annual total remuneration of its employees after excluding that individual, retained with the remuneration components, currency, annualisation, entity boundary and method edition.
Specification
Metric specification
- Result format
- Structured table
- Unit
- Highest-paid individual remuneration (times median employee remuneration)
- Reporting basis
- Reporting period or measurement date declared by the source method
- Aggregation
- Do not sum or arithmetically average reported percentages, rates, ratios, or averages; consolidate only from compatible component observations under a disclosed method.
- Pillar
- Social
- Topic
- Pay, wages and labor relations
- Controlled domain
- Workforce
- Entity type
- Metric
Reporting boundary
Ratios are never summed or averaged. Consolidation requires recomputing the highest-paid individual and employee median across the consolidated employee population under one method. Entity ratios cannot be averaged. The highest-paid individual must be excluded once from the median population.
Cross-library identity
Library mappings and variants
These links compare quantity, population, boundary, period, unit, denominator, aggregation, dimensions, and method edition. Partial relationships are navigation aids only and never authorize observation reuse.
- Different calculation methodPartial relationship; observations remain separate.Ratio of annual total compensation for organizations highest paid individual to median annual total… — GRI 2-21,…
- Related but distinct metricPartial relationship; observations remain separate.Ratio of percentage increase in annual total compensation for organizations highest paid individual to… — GRI…
Verified source occurrences
Framework coverage
This is one canonical metric. The bindings below show every verified framework occurrence without creating duplicate metric pages. Edition, disclosure, role, and relationship remain source-specific.
- Adopting DisclosureSource evidence
European Sustainability Reporting Standards
- Publisher
- European Commission
- Edition
- Consolidated 1 January 2025 edition
- Requirement
- Not Specified
- Relationship
- Defines Disclosure
- Mapping outcome
- Direct Evidence
- Source locator
- S1-6 PDF pp205-206; S1-8 p207 and AR 66-70 pp227-228; S1-10 p208 and AR 72-74 p229; S1-16 pp211-212 and AR 98-102 pp233-234
- Adopting DisclosureGRI 2-21
GRI Standards
- Publisher
- Global Reporting Initiative
- Edition
- Files published 19 June 2025; entry point dated 23 June 2025
- Requirement
- Not Specified
- Relationship
- Method Variant
- Mapping outcome
- Cross Library Link
- Source locator
- GRI 2-21, paragraph a; taxonomy entry point dated 23 June 2025
Value structure
Dimensions and units
- Unit
- Highest-paid individual remuneration (times median employee remuneration)
- Reporting basis
- Reporting period or measurement date declared by the source method
Unit meaning: A non-negative ratio displayed as a multiple, such as 42.5 times, with numerator and denominator using the same currency, period, annualisation, and remuneration boundary.
Table fields and units
- Reporting entity and consolidated boundary
- Highest-paid-person population rule
- Employee population
- Employee exclusions
- Pay-component profile
- Reported value
- Highest-paid individual remuneration (times median employee remuneration)
- Measurement-source edition
- Assurance status
Published dimensions
- Reporting entity and consolidated boundary.
- Highest-paid-person population rule.
- Employee population.
- Employee exclusions.
- Pay-component profile.
- Guaranteed, variable, cash, in-kind and long-term-incentive treatments.
- Currency and scale.
- Exchange-rate method.
- Annualisation method.
- Purchasing-power adjustment flag and method.
- Reporting period.
- Source and method edition.
- Assurance status.
Calculation method
Formula information
- Status
- Specified
- Formula type
- Ratio
Formula
highest_paid_to_median_remuneration_ratio = highest_paid_individual_annual_total_remuneration ÷ median_employee_annual_total_remuneration_excluding_highest_paid_individualApply this formula only with the metric's declared population, reporting period, units, denominator, and method-edition controls.
Variables
| Symbol | Variable | Definition | Unit |
|---|---|---|---|
highest_paid_individual_annual_total_remuneration | highest paid individual annual total remuneration | Input defined by the reporting boundary for Highest-paid individual to median employee annual remuneration ratio. | [ISO currency] at a stated scale |
median_employee_annual_total_remuneration_excluding_highest_paid_individual | median employee annual total remuneration excluding highest paid individual | Input defined by the reporting boundary for Highest-paid individual to median employee annual remuneration ratio. | [ISO currency] at a stated scale |
Verified sources
Evidence and status sources
Sustopedia checked each record-specific claim directly against primary publisher material. Labels distinguish current measurement authority from future compatibility and corroborative, legal, edition, or method status context. Corroborative evidence can support a stated limitation but cannot establish the core measurement by itself.
Measurement evidence
- Measurement evidenceChecked 15 August 2026
Commission Delegated Regulation (EU) 2023/2772, consolidated 1 January 2025
- Publisher
- European Commission
- Edition
- Consolidated 1 January 2025 edition
- Locator
- S1-6 PDF pp205-206; S1-8 p207 and AR 66-70 pp227-228; S1-10 p208 and AR 72-74 p229; S1-16 pp211-212 and AR 98-102 pp233-234
Supports: Supports the measurement definition, boundary, and source-reported fields for Highest-paid individual to median employee annual remuneration ratio.
Open official source
Use with context
Interpretation boundaries
Method disclosures required
Source-edition basis: Commission Delegated Regulation (EU) 2023/2772, consolidated 1 January 2025 — Consolidated 1 January 2025 edition. Retain the exact source edition on every observation; later editions require a separate method profile.
- Reporting entity and consolidated boundary.
- Highest-paid-person population rule.
- Employee population.
- Employee exclusions.
- Pay-component profile.
- Guaranteed, variable, cash, in-kind and long-term-incentive treatments.
- Currency and scale.
- Exchange-rate method.
- Retain the exact measurement-source edition with every observation.
- A non-negative ratio displayed as a multiple, such as 42.5 times, with numerator and denominator using the same currency, period, annualisation, and remuneration boundary.
Record-specific limitations
- The result does not show pay distribution, living wage, equal pay or pay equity. Size, sector, part-time mix, outsourcing, automation, remuneration design, exchange rates and purchasing- power adjustments affect comparability. The highest-paid individual may not be the chief executive.
Interpret this metric with the stated reporting boundary, period convention, value shape, and unit. Results prepared with different boundaries or conventions may not be directly comparable.
Measurement evidence supports the core record-specific claims described above. Corroborative evidence can support limitations, while compatibility and status sources provide their separately labelled context. None of these cards by itself determines an organisation's legal applicability, filing readiness, assurance status, or compliance conclusion.