The pay parity matrix − a tool for analysing the structure of pay

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This article introduces a new tool for measuring relative pay within organizations. We call this innovation the ‘Pay Parity (PP) matrix’, and discuss its advantages and useful properties. The PP matrix allows us to conveniently measure, and draw inferences about, the nature of the whole remuneration schedule, such as its gradient and smoothness. We illustrate the application of the PP matrix by using data on the remuneration of academic executives in universities.

Keywords: C40; C43; PP matrix; executive compensation; indexes of pay; matrix comparisons

Document Type: Research Article


Affiliations: Business School, The University of Western Australia, 35 Stirling Highway Crawley 6009, Australia

Publication date: December 1, 2012

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