PAYdata holds a database of executive pay and reward that we collect directly from our customers.  We combine this with data published in annual reports and accounts.  This means we can offer three services to help with benchmarking executive rewards:

• We produce an executive salary survey that currently focuses on the construction and business services sectors; 
• We undertake benchmarking exercises for either a specific role or roles, perhaps to help with recruitment or retention decisions;
• We produce reports for remuneration committees to inform the annual review process.

How does it work?

There are three things needed to benchmark executive pay:

• Access to the right data;
• Deep understanding of how executive pay works;
• Thorough knowledge of the business and its structure.

Executive benchmarking is about interpreting the market data.  So how do we answer the question “what should our company pay the Chief Executive?”  Well first of all we select the right comparator companies.  We do this by making sure we draw data from companies in relevant business sectors.  We then check to make sure those companies are a good fit in terms of size and complexity.  This makes sure that the data meets corporate governance standards: it recognises size and it avoids skewing the outcome.

Next we assess all Chief Executive roles in the data set.  How big are the businesses they manage in terms of turnover and number of employees?  How much of the business is outside of the UK?  Are there structure or complexity differences to take into account?  This process produces a points score for each role which we can use to plot job size against pay:

Using this graph we can then identify the pay range that makes most sense for the role we are reviewing.  How much you then pay is a management decision.  This will normally take into account factors such as personal contribution and experience.

We use the same thorough approach in all our executive pay reports.  Even our executive survey provides data using this method.  This means we meet the same standards we set for all our salary surveys:

• We drive the job matching to reduce your work;
• We give you easy to use, personalised reports that provide the answers you need.

The Benefit:

Our thorough approach provides you with reassurance that your top team reward is matched to the demands of your roles.

How can I find out more?

This e-mail address is being protected from spambots. You need JavaScript enabled to view it   to send an email to PAYdata or call us on 01733 364070