Pros and Cons for Charities Adopting Salary Ratios

High salaries in the third sector have come under scrutiny recently, but some charities have ratios in place to bring transparency to their pay policies and ensure that what their leaders earn is not out of proportion to what the rest of the staff are paid.

One is the development charity Christian Aid, which has a pay ratio of 4:1. This means the salary of the highest-paid member of staff is no more than four times that of the median salary paid to all U.K. staff (those working abroad are paid according to the local economy and market rate).