Median Employee Compensation

Median employee compensation is the total pay of the single employee a company identifies as sitting at the midpoint of its workforce’s pay distribution, calculated using the same total-compensation methodology as the Summary Compensation Table. It is the denominator in the CEO pay ratio.

The identification method is company-specific and disclosed in the proxy: some companies rank the full global workforce, others apply a permitted statistical sampling approach, and part-time or seasonal workers may or may not be included depending on how the company defines its employee population that year.

Because the underlying workforce composition varies enormously by industry — a software company’s median employee and a retailer’s median employee are different kinds of jobs — the figure is best read in the context of the company’s own business, not compared blind across industries.

Flex's identified median employee earned $12,939 in total compensation for fiscal 2026, the denominator behind its pay ratio disclosure.