← HR Metrics·Compensation & Benefits
Compensation % of EBITDA
Annual compensation spend as a share of (implied) EBITDA.
How it’s computed
annual_comp_spend / implied_ebitda * 100
What the evidence shows
Evidence (effect sizes, priors, validity) is syncing from Principia.
Run it on your data
This metric is computed in the People Analytics Toolbox on your own numbers. See pricing — posted, no quotes.
sources: toolbox:metrics-catalog
What the literature says
The measurement literature behind this signal — sourced, so you can defend it.
“For the denominator, he used the 2007 Bureau of Labor Statistics average American worker annualized pay of $36,100. For the numerator, he used the pay of CEOs of very large companies. For the company with the highest sales rank, the differential was 525; for the company with the…”
— Compensation Benefit Designmatch 54%
“Those accepting this position maintain that women performing jobs of comparable worth to those performed by men should be paid the same as men, excepting allowable differences (for example, seniority plans, merit plans, productionbased pay plans or different locations).[C1, C2,…”
— Worldatwork Handbook Compensationmatch 54%
“This will allow for a better estimation of the eventual payouts. Also, if the incentive plan has a provision for reduced payouts when targets are not achieved (usually up to a minimum threshold), the estimate of future payouts should account for this possible occurrence.…”
— Compensation Benefit Designmatch 53%
Resources: Compensation Benefit Design · Worldatwork Handbook Compensation