How SafeRatio evaluates reasonable compensation
SafeRatio does not just estimate a number. We evaluate reasonable compensation using role, duties, company context, market data, and defensibility logic—and we show you how we got there.
What we use
- Role & duties — Title, responsibilities, and time commitment
- Company financials — Revenue, profitability, and size
- Market compensation — Comparable roles and market data
- Defensibility logic — How the range holds up under scrutiny
- Confidence band — How certain the analysis is, given inputs
- Corrective actions — What to do if current comp is outside the range
Why it matters
- Transparent. You see the inputs and the logic. No black box.
- Audit-ready. Documentation supports the conclusion. Same structure every time.
- Repeatable. Use for every S corp, every year. Consistency reduces risk.
What you get
- A defensible compensation range
- A confidence score for that range
- A corrective action plan (if needed)
- A report and audit trail you can keep on file