Mercer´s methodology analyzes the total remuneration in 6 levels:
- Base salary = Base salary multiplied by 12
- Base annual salary= Base salary + Christmas bonus (multiplied by 13)
- Total guaranteed cash compensation = Base salary plus guaranteed allowances
- Total cash compensation = Total guaranteed cash compensation plus short-term incentive, sales incentive, profit sharing or other incentive awards
- Total direct compensation = Total cash compensation plus long-term incentive awards, valued using Black-Scholes methodology for appreciation-based awards
- Total remuneration = Total direct compensation plus benefits and perquisites.