A time-honored tradition in business media is searching through companies’ annual reports to see just how much they pay their treasured CEOs. As of this year, thanks to a provision in the Dodd-Frank law, it’s also possible to learn the median pay among employees at these companies.
In biopharma, that pay is pretty ample.
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Is the ratio of CEO to median pay a real indication of effective CEO pay or more of a issue with the median pay to all employees (i.e. Geron lowest CEO to Employee ratio 5.4 X versus Geron with the highest median pay/employee of $500K. What would the chart look like if a broader assumption was made and a targeted median pay was used at X ( propose – $100k) level for large Pharma vs Y (propose $200K) for small/mid cap company (assuming median pay is higher to balancersik of working with a smaller company)
Why