In accordance with SEC rules, we are providing the ratio of the annual total compensation of our CEO to the annual total compensation of our median employee. The 2021 annual total compensation of our current CEO Mr. Gelsinger is $178,590,400, the 2021 annual total compensation of our median compensated employee is $104,400, and the ratio of these amounts is 1,711 to 1.
This pay ratio is a reasonable estimate calculated in a manner consistent with SEC rules based on our human resources system of record and the methodology described below. Because the SEC rules for identifying the median compensated employee and calculating the pay ratio based on that employee’s annual total compensation allow companies to adopt a variety of methodologies, to apply certain exclusions, and to make reasonable estimates and assumptions that reflect their compensation practices, the pay ratio reported by other companies may not be comparable to the pay ratio reported above, as other companies may have different employment and compensation practices, different types of workforces and operate in different countries and may utilize different methodologies, exclusions, estimates, and assumptions in calculating their own pay ratios. We are a global company with more than 54% of our employees located outside the US and significant manufacturing operations. As a result, our employee population is different than that of other companies.
Our median employee works in Malaysia as a full-time program manager, which is a non-technology position. For purposes of identifying our median compensated employee as of our measuring date of December 25, 2021 (the last day of our fiscal year), we used total direct compensation as our consistently applied compensation measure. In this context, total direct compensation means the applicable annual base salary determined as of December 25, 2021, the annual incentive cash target amount or commission target amount payable for service in 2021, and the approved value of the annual equity awards granted during 2021, which we annualized for all permanent employees who did not work for the entire year. To identify our 2021 median compensated employee, we then calculated the total direct compensation for our global employee population and used the foreign currency exchange rates in effect at the end of the fiscal year 2021.
As of fiscal year-end, we had 121,100 worldwide employees, and approximately 79% of our US employees’ total direct compensation exceeds our median employee’s total direct compensation.
Supplemental Pay Ratio
We are presenting an alternative pay ratio that we believe facilitates a better understanding of our CEO’s ongoing annual total compensation and better comparability. The pay ratio provided above is based on our CEO’s 2021 annual total compensation, which contained special one-time (i) new-hire equity awards including make-whole awards to replace the unvested equity awards Mr. Gelsinger forfeited as a result of his departure from his prior employer, and (ii) new-hire cash bonus.
The supplemental pay ratio excludes the non-recurring special equity awards and cash bonus to our CEO, and includes the representative ongoing intended long-term incentive equity award target value he received in 2022. For purposes of this ratio, our CEO’s 2021 annual total compensation would be $28,799,000, which when compared to the annual total compensation of our median compensated employee of $104,400, results in a pay ratio of 276:1.
This pay ratio is a reasonable estimate calculated in a manner consistent with SEC rules based on our human resources system of record and the methodology described below. Because the SEC rules for identifying the median compensated employee and calculating the pay ratio based on that employee’s annual total compensation allow companies to adopt a variety of methodologies, to apply certain exclusions, and to make reasonable estimates and assumptions that reflect their compensation practices, the pay ratio reported by other companies may not be comparable to the pay ratio reported above, as other companies may have different employment and compensation practices, different types of workforces and operate in different countries and may utilize different methodologies, exclusions, estimates, and assumptions in calculating their own pay ratios. We are a global company with more than 54% of our employees located outside the US and significant manufacturing operations. As a result, our employee population is different than that of other companies.
Our median employee works in Malaysia as a full-time program manager, which is a non-technology position. For purposes of identifying our median compensated employee as of our measuring date of December 25, 2021 (the last day of our fiscal year), we used total direct compensation as our consistently applied compensation measure. In this context, total direct compensation means the applicable annual base salary determined as of December 25, 2021, the annual incentive cash target amount or commission target amount payable for service in 2021, and the approved value of the annual equity awards granted during 2021, which we annualized for all permanent employees who did not work for the entire year. To identify our 2021 median compensated employee, we then calculated the total direct compensation for our global employee population and used the foreign currency exchange rates in effect at the end of the fiscal year 2021.
As of fiscal year-end, we had 121,100 worldwide employees, and approximately 79% of our US employees’ total direct compensation exceeds our median employee’s total direct compensation.
Supplemental Pay Ratio
We are presenting an alternative pay ratio that we believe facilitates a better understanding of our CEO’s ongoing annual total compensation and better comparability. The pay ratio provided above is based on our CEO’s 2021 annual total compensation, which contained special one-time (i) new-hire equity awards including make-whole awards to replace the unvested equity awards Mr. Gelsinger forfeited as a result of his departure from his prior employer, and (ii) new-hire cash bonus.
The supplemental pay ratio excludes the non-recurring special equity awards and cash bonus to our CEO, and includes the representative ongoing intended long-term incentive equity award target value he received in 2022. For purposes of this ratio, our CEO’s 2021 annual total compensation would be $28,799,000, which when compared to the annual total compensation of our median compensated employee of $104,400, results in a pay ratio of 276:1.
