Ratcheting up pay with peer comparison
Out of the companies Amgen considers its peers, it ranks eleventh out of 12 in company revenue. Eight companies took in at least twice as much as Amgen. Yet, Amgen ranks second in total CEO pay. Part of the reason is that the company aims to pay their CEO above the median for CEOs at peer companies. In doing so, Amgen chooses larger companies with which to make the comparison. Read related article.
Sources: Equliar, Review of Financial Studies, Bureau of Labor Statistics. Tobey/The Washington Post.