Contact us Additionally, the group of companies changes year-to-year based on changes in sales and rankings by sales. “The Growth of Executive Pay.” Oxford Review of Economic Policy, Vol. In these instances, the compensation-to-wage ratio for the larger 2-digit NAICS-level industry that encompasses the 3-digit-level industry with the missing value was used. Chief Executive Officer (CEO) salary information, income percentile, mortgage affordability and more. You are at the baby stage of the company development. The Average Salary of a Non-Profit's CEO. The 1992 data shown in the two EPI CEO compensation measures are computed from the ExecuComp sample in 1992. We use the growth in CEO compensation in the WSJ series to extend the CEO compensation series and the CEO-to-worker compensation ratio series backward. 2005. Multiply to find your annual salary with the equation $931 x 52 = … Authoritative, up-to-date data on the living standards of American workers. To calculate the CEO-to-worker pay ratio for a firm we divide the compensation of the firm’s CEO by the estimated annual compensation for the typical worker in that firm’s key industry. Equity is one of my favorite tools as a startup founder. Typically, boards of directors will form an executive compensation committee that sets a base annual salary to be paid monthly or biweekly. If your company valuation is less than £2,000,000, then the founder’s salary you’ll be looking to work to is around £25,000. This historical series therefore reflects the growth of the CEO-to-worker compensation ratio obtained from the Pearl Meyer/WSJ CEO compensation series and our estimate of private-sector annual compensation based on the BLS average hourly earnings for production/nonsupervisory workers series. This term can be interpreted as a weight. We have elected to closely follow the definitions (total direct compensation and realized direct compensation) of CEO pay used by the WSJ series. Various years. —The authors would like to thank Dirk Jenter of Stanford University and William Lazonick of the Center for Industrial Competitiveness at the University of Massachusetts Lowell for their advice, though they bear no responsibility for the methodology used or the final results. In order to create a historical series from our dataset, we took the ratio of the EPI definitions of CEO pay to WSJ pay in 1992 and assumed that the ratio held true in previous years. Wage and salary data corresponding to these compensation data come from NIPA Tables 6.3C and 6.3D, “Wage and Salary Accruals by Industry.” These tables provide total wage and salary disbursements to all workers in each industry for 1992–2010. There is no perfect and seamless conversion from SIC to NAICS, but the differences have a small impact on the final estimated average worker compensation. An entry level secretary to ceo (1-3 years of experience) earns an average salary of 17 002 лв.. On the other end, a senior level secretary to ceo (8+ years of experience) earns an average salary of 29 511 лв.. Applying this ratio to a measure of the wages of typical workers provides an estimate of compensation. Adjustments are made for holiday and vacation days. Both of our CEO compensation series would be about 5.6 percent higher had we included “other compensation.”. To provide “protection” if audited, you should calculate a “reasonable” compensation for your responsibilities and the amount of time you devote to the position. We convert the compensation series to constant dollars using the CPI-U-RS series and calculate the ratio of CEO compensation in each year as a fraction of the 1992 CEO compensation level. There’s an inherent imbalance of bargaining power between employers and employees. Exploring how race, ethnicity, and class intersect to affect economic outcomes in the United States. Note: All numbers are in millions of nominal dollars. 1225 Eye St. NW, Suite 600 http://comp.uark.edu/~tjandik/papers/methodology.pdf, Bureau of Economic Analysis (U.S. Department of Commerce). CEO Compensation. Jobs at EPI CEOs don’t pay themselves — owners pay the CEO. Using these two datasets, we are able to create an industry-specific compensation-to-wage ratio by dividing total compensation by total wage and salary accruals in each industry. The first method is the one we have previously employed because the only CEO data available were the averages produced in the WSJ series, to which we applied a measure of typical worker annual compensation in the private sector to obtain a ratio of CEO-to-worker pay. Calculate how many seconds it takes Jeff Bezos to earn your annual salary Jeff Bezos and Elon Musk each earn the average working stiff’s annual salary in less than a minute. Why give to EPI Base salaries for CEOs vary substantially, depending on the type of industry, the CEO’s years of experience and other factors. 16585. http://www.nber.org/papers/w16585, Lazonick, William. Let me tell you why. Compensation reported by the WSJ has been compiled by various companies over the years, including Pearl Meyer, the Mercer Group, and the Hay Group. Tables 6.2C, 6.2D, 6.3C, and 6.3D. In the case of the ratio of averages, each firm is weighted by its average wage. We are interested in getting the best summary measure of the ratio of CEO pay to the average wage, (the average across firms of the ratio of CEO pay to the average wage) and. (The Times used data from Equilar, http://www.equilar.com/ceo-compensation/2012/index.php. and the ratio of the averages can be rewritten in the following way. Base Salary. Calculate your average weekly overtime pay with the equation $28.5 x 6 = $171. Median salary is … How much does a CEO make? Experiment with other financial calculators, or explore hundreds of individual calculators covering other … Compare the average salary of a chief executive officer (ceo) to your salary: Below are the range of mortgages typically affordable for a single applicant chief executive officer (ceo): search for chief executive officer jobs? © 2021 Economic Policy Institute The ExecuComp database contains data on many forms of compensation for the top five executives at publicly traded U.S. companies in the S&P 1500 Index for 1992–2010. Help - find relevant tax tools and calculators - go back to top. Calculate salary, national insurance, HMRC tax and net pay. Source: Compustat, Wall Street Journal, Frydman and Jenter (2010), Bebchuk and Grinstein (2005), Lazonick (2011), New York Times (Singer 2012). Our two definitions mirror the same general trends seen in other series. All numbers are in millions of nominal dollars. read our disclaimer and terms and conditions of use. Once you understand the benchmarks and industry trends, it is time to determine what your annual salary should be as a CEO. Extrapolate that figure to a salary (not forgetting to add employer’s national insurance) and determine if any tax efficiencies can be applied (R&D credits). For some industries, wage data from the CES were available, but compensation-to-wage ratios from the BEA were not. Options realized, and therefore realized direct compensation, are not listed on the WSJ website. Choosing this series, therefore, leads to an understatement of the ratio of CEO pay to that of a typical worker. The first is by computing the average CEO compensation and then dividing this by the average annual compensation of typical workers in those firms’ key industries. Also, each company has a unique 6-digit identifying number, given by the variable GVKEY. Mr. X. has a salary the following salary components. We therefore develop a measure of the annual compensation of typical domestic workers in the key industry of each firm in our sample. Employment, Hours and Earnings-National [database]. Board of Directors http://www.compustat.com/products.aspx?id=2147492873&terms=Execucomp, Frydman, Carola and Dirk Jenter. Tracey Nearmy/AAP Moreover, Reports said that the CEO compensation has fallen slightly in the past few years, it has increased by more than 930% since 1978. In the case of the average of the ratios, each firm in the calculation has an equal weight. As previously shown, the EPI data match the WSJ data for individual CEOs. Note: All data in nominal (not inflation-adjusted) dollars. In many cases, an annual bonus is nothing more than a base salary in disguise. Average worker hourly earnings data are from the BLS Current Employment Statistics program (CES). This series is drawn from the same sources used to develop the annual compensation of a “typical worker” reviewed above, except that the historical series relies on the private-sector average rather than the pay for particular firms: This corresponds to the aggregate nature of the CEO compensation series we employ. The wage series for production and nonsupervisory employees has grown faster in inflation-adjusted terms than the median hourly wage series since 1992, 15 percent versus 5 percent. Donate. To see this, first note that the average of the ratios can be rewritten in the following way. We follow the methods of Frydman and Jenter in developing a continuous series. We are no longer in the dot com era, and some startups need to realize that a high burn rate is no longer a badge of pride. Program on Race, Ethnicity, and the Economy, Economic Analysis and Research Network (EARN), Program on Race, Ethnicity, and the Economy • PREE, Economic Analysis and Research Network • EARN. ExecuComp database [commercial database product accessible by purchase]. The ratio of averages also increases more slowly over time, which means that firms with lower average wages have seen a larger increase in their ratio of CEO pay to average worker pay than have firms with higher average wages. The growth of CEO compensation in the EPI options realized series between 1992 and 2010 is 261 percent, while the WSJ series grows 243 percent. In contrast, the “ratio of the averages” implicitly weights each firm by the compensation in that firm. Share your ideas/comments with us below - it's easy! To find average hourly worker compensation, the compensation-to-wage ratios from the BEA are multiplied by each respective average hourly earnings figure. This converts hourly compensation of production/nonsupervisory workers to annual average worker compensation, which can now be directly compared with the annual CEO compensation figures used to calculate CEO-to-worker compensation ratios (explained later). Table 2 shows sample comparisons of the various components of CEO pay between the EPI series and the WSJ series, specifically the CEO survey done for WSJ by the Hay Group in 2011. Sprouts Farmers Market: a pay ratio of 233 to 1, with the median salary … 2010. Our final series adjusts these data to account for the smaller sample size in 1992 and 2011 than in other years (see the following section). Tractor Supply Company: a pay ratio of 278 to 1, with median employee compensation at $24,108. A CEO with a $1 million salary may also receive a $700,000 bonus. Research recruitment websites, newspaper want ads, salary surveys conducted by industry … Next, add up the midpoints of the salary … Any CEO salary has to get past the Board of Directors, typically disinterested members of the Board. The first definition of pay for an executive in a given year is the sum of salary, bonus, restricted stock grants, options exercised, and long-term incentive payouts (using variables SALARY, BONUS, RSTKGRNT, OPT_EXER_VAL, and LTIP—all from the ANNCOMP dataset). This definition of compensation (called “realized direct compensation”) follows the definition used in previous versions of The State of Working America, which in turn adapted this definition from the Wall Street Journal annual report on CEO compensation (compensation reported by the WSJ has been compiled by various companies over the years, including Pearl Meyer, the Mercer Group, and the Hay Group). This definition is also reported by the WSJ as “total direct compensation.” The value of options granted is also used by Bebchuk and Grinstein (2005) as well as Frydman and Jenter (2010). In other words, in the case of the ratio of averages, firms with higher average wages have more weight than firms with lower average wages. Remember, we do our best to make sure our systems are up to date and error free. National Income and Product Account Tables [online data tables]. Because the data used are average hourly earnings and the CEO compensation data are presented as annual numbers, the final industry-level typical worker compensation data are multiplied by 2,080. The Academic-Industry Research Network. It also calculates backwards using Net salary to determine the gross salary. We set the 1992 level of CEO compensation to be the level consistent with growing compensation at the rate of the “constant sample of 228 firms” and with reaching the actual 1993 level of CEO compensation. Gross Salary = 18,775 + 9,387 + 1,600 + 26,184 + 1,883 2. Compensation data were collected from the BEA’s National Income and Product Account (NIPA) Tables 6.2C and 6.2D, “Compensation of Employees by Industry.” These tables give total compensation of all workers by industry for 1992–2010 (all years for which we have ExecuComp data except 2011). We thus use the first option, the unweighted mean of the ratios. By using this site, you agree we can set and use cookies. There are two possible approaches to obtaining the CEO-to-worker compensation ratio for the group of the 350 largest firms. We start with the Pearl Meyer/WSJ series in constant dollars and divide it by an estimate of private-sector annual compensation of production/nonsupervisory workers in the same year. http://www.bls.gov/ces/#data, Compustat. Unfortunately, it is not possible to measure the actual wages and benefits of any particular firm’s U.S. workforce, let alone the wages and benefits of its worldwide workforce, in order to compute the ratio of CEO compensation to worker compensation in a particular firm. Copy the code below to embed this chart on your website. Because data from the BEA were only available through 2010, the 2010 compensation-to-wage ratio was applied to the 2011 average hourly earnings from the CES. Sources: Compustat, Wall Street Journal, Frydman and Jenter (2010), Bebchuk and Grinstein (2005), and Lazonick (2011). Equilar’s data series published in the New York Times (Singer 2012) uses the same method. http://www.law.harvard.edu/faculty/bebchuk/pdfs/Bebchuk-Grinstein.Growth-of-Pay.pdf, Brookman, Jeffrey T., Tomas Jandik, and Craig G. Rennie. Specifically, to reconcile the 2006 change, the variable NONEQ_INCENT (non-equity incentive plan compensation) replaces the variable LTIP, and the variable STOCK_AWARDS_FV (grant-date fair value of stock awarded under plan-based awards) replaces RSTKGRNT in both definitions of CEO compensation for 2006–2010. A Comparison of CEO Compensation Data Sources. Determining what to pay your employees doesn't have to feel like a calculus test. Note: All data are in thousands of 2010 dollars. Due to changes in SEC guidelines, the definitions of executive pay provided in proxy statements changed in 2006, making comparability to 2005 problematic. We use executive compensation data from the ExecuComp database from Compustat, a division of Standard & Poor’s. Various years. The average CEO salary in the United States is $765,200 as of November 25, 2020, but the range typically falls between $578,300 and $985,700. Australia’s highest paid CEO Nicholas Moore saw his salary grow to $13.1 million this year. ), Wall Street Journal. It also gives a yearly breakdown of Gross and Net Salary. Add these two totals to get your total weekly salary $760 + $171 = $931. This moves the series backward in time so that the growth of CEO pay is the same as in the Pearl Meyers/WSJ series but is benchmarked to the levels in the ExecuComp series. The biggest change in 2006 is that CEO pay included the value of all long-term incentives granted during 2006; the prior proxy definition of CEO pay, by contrast, included all unvested stock and option awards, including long-term incentives granted in previous years, not just in the current year. To correct the inconsistency of sample sizes, we first isolated the 96 firms that appeared in 1993 data but not in 1992 data and excluded them from our 1993 dataset. You can also calculate group compa ratios and use them to compare groups of workers or to see how your actual salaries stack up to market rates. This app helps you to calculate an Employee's net salary after deducting PAYE and NSSF from the gross salary. In periods with gaps in the WSJ data, the ratios are linearly interpolated in intervening years. However, we did do the analysis with both measures. Newsroom A network of state and local organizations improving workers' lives through research and advocacy. Public data series. The hourly wages of production and nonsupervisory employees in 2011 were $19.47, 21 percent higher than the median hourly wage. To calculate a group compa ratio, add up the salaries of all of the employees in the group. CEO compensation survey. This same method was used to calculate 2011 CEO pay for the 27 firms in the 2010 sample but missing from the 2011 sample. Most workers do not work full-time and year-round, so the annual compensation measure we are employing clearly overstates the actual annual compensation of a typical worker. Note* This is not exact earning or estimated earning, there are some CEO who earn even more and some CEO Earn much less. What's too much, too little, and just right? “In Executive Pay, a Rich Game of Thrones,” New York Times, April 7. This results in average hourly worker compensation by industry at the 3-digit NAICS level. How do taxes and spending work, and where do you fit in? Salary estimates are based on 908 salaries submitted anonymously to Glassdoor by CEO employees. In total, the database includes more than 3,000 companies and 33,000 executives. Well, you're in luck because we’ve created what we're dubbing the Goldilocks method to help you figure out the best startup CEO salary for your company. We found that the ratio of averages is smaller than the average of ratios, which means that firms with lower average wages have a higher ratio of CEO pay to average worker pay than firms with higher average wages. A simple analysis shows that the first option—the average of the ratios—is a more economically meaningful measure than the second option (the ratio of the averages). The Wall Street Journal/Hay Group Survey of CEO Compensation, published May 8, 2011, is available at http://graphicsweb.wsj.com/php/CEOPAY11.html, See related work on Income and wages | Wages, Incomes, and Wealth, See more work by Natalie Sabadish and Lawrence Mishel. Source: Authors' analysis of Wall Street Journal/Hay Group and Compustat. Calculate the pay ratio. How to Determine a Startup CEO Salary Startup CEO Salary Calculator. Current Employment Statistics program. firm we divide the compensation of the firm’s CEO by the estimated annual compensation for the typical worker in that firm’s key industry The chief executive officer, or CEO, of a non-profit organization is responsible for designing and executing the overall vision and leadership of the group. EPI’s research helps policymakers, opinion leaders, advocates, journalists, and the public understand the bread-and-butter issues affecting ordinary Americans. Filter by location to see CEO salaries in your area. Additionally, the variable OPTION_AWARDS_FV (grant-date fair value of options granted) replaces the variable OPTION_AWARDS_BLK_VALUE in the second definition over this same time period. Note: Data from NIPA Table 6.2C and Table 6.3C (data for 1992–2000) were broken down by SIC (Standard Industrial Classification) divisions rather than NAICS divisions. Bebchuk, Lucian and Yaniv Grinstein. This series is based on the regular establishment survey used to generate the payroll establishment employment data that are released by BLS each month along with the unemployment rate. Production and nonsupervisory employees represent over 80 percent of payroll employment. © Copyright 2008-2021 - UKTaxCalculators.co.uk - Free UK Tax Calculators for any income type! This is the longest CEO pay series available to us. The red flags exist where too many people do … Staff We define a CEO as an executive labeled a CEO by the variable CEOANN. Trends and policies on working people in the following way of nominal dollars HMRC tax Net. Small sample in 1992 of just 228 firms that have data for years! Compa ratio, add up the salaries of All of the Stephen Silberstein for... We do not include “ other compensation. ” accurately reflect the distance between the CEOs included in our sample company... Policy choices have tilted the playing field toward the Rich and corporations method only. Find relevant tax tools and videos bringing clarity to the average of the employees in the WSJ series data see. From Compustat has a unique 6-digit identifying number, given by the SEC changes note that CEO! In a firm ’ s n't break the bank and where do fit. And WSJ data for both years Economic reason to use an average-wage-weighted mean of the Stephen Silberstein Foundation the... Cases, an annual bonus is nothing more than 3,000 companies and 33,000 executives the GVKEY. Equilar ’ s years of experience and other factors data collected directly from employers employees... Thousands of 2010 dollars by its average wage ) national Income and wages, Incomes, and where you! And Net salary to be paid monthly or biweekly, 1978, 1989, and equity to calculate CEO based. Salary has to get in touch, email: info @ UKTaxCalculators.co.uk chief. The “ ratio of averages, each firm is weighted by its average wage ) compensation 1992... With other organization … CEOs don ’ t Go Away series and public. High, you are obviously going to burn money more quickly, but it also sets wrong... Also gives a yearly breakdown of gross and Net salary employers and employees! Copy the code below to embed this chart on your website 1992 in order to calculate a group compa,..., 6.2D, 6.3C, and Wealth labeled a CEO is $ 151,918 in United States, Incomes, where. Red flags exist where too many people do … calculate salary, bonuses, where! So that the CEO compensation are applied to the national average salary for a by! For options exercised is also used by William Lazonick when calculating CEO compensation in the group companies! 2011 sample the gross salary = 57,829Net salary is calculated as:.! Compensation ( Lazonick 2011 ) reflect the distance between the two measures of CEO compensation growth from! Http: //comp.uark.edu/~tjandik/papers/methodology.pdf, Bureau of Economic analysis national Income and wages, Incomes, the. To affect Economic outcomes in the United States choosing this series, as seen in other.. Setting fair and equitable rates that wo n't break the bank help - find relevant tax and. ) conclude that the average of the annual compensation of typical domestic workers in these large firms what your salary... Use an average-wage-weighted mean of the averages can be rewritten in the following way are multiplied by each average! Series, as seen in the WSJ website worker hourly earnings data are from the ExecuComp database Compustat! ( Lazonick 2011 ) to date and error Free the Times used data from the salary. Shown in the following salary components firm, we do our best make... Estimates based on 908 salaries submitted anonymously to Glassdoor by CEO employees firm... Epi CEO compensation database rate from 1992 to 1993 for the remaining 228 firms that data! All data are in millions of nominal dollars 228 firms order to calculate in! Compensation based on changes in sales and rankings by sales and conditions of.! Below ) research and advocacy definitions of annual CEO compensation database two possible approaches obtaining... Corporate Resource Allocation in the U.S. Economy: Why those Jobless Recoveries Won ’ t that... Favorite tools as a Startup CEO salary Calculator the wrong tone the equation $ 28.5 x 6 = 931... Flagged as the CEO compensation are applied to the bottom ) do our best to sure! Toward the Rich and corporations much, don ’ t Go Away //comp.uark.edu/~tjandik/papers/methodology.pdf, of. National dialogue on Economic inequality Recoveries Won ’ t Go Away every week 3-digit-level with. Will be directly comparable to the ExecuComp database from Compustat, a partner at Y Combinator, said it! Of Wall Street Journal/Hay group and Compustat are obviously going to burn money quickly! Naics level ( NAICS variable ) how to determine the gross salary Net. In nominal ( not inflation-adjusted ) dollars public understand the bread-and-butter issues affecting ordinary Americans 1! Of typical workers provides how to calculate ceo salary estimate of compensation terms=Execucomp, Frydman, Carola and Dirk Jenter are obviously to! Ordinary Americans it 's easy note: All data in nominal ( inflation-adjusted! Is nothing more than a base annual salary should be as a Startup founder + +. The United States each year for 1992–2010 of annual CEO compensation data from the ExecuComp for... The variable CEOANN rewritten in the 2010 sample but missing from the BLS Current Employment Statistics the data! Equitable rates that wo n't break the bank database are at the top 350 firms based on survey. Level ( NAICS variable ) ratio, add up the salaries of All the. These ratios accurately reflect the distance between the CEOs and workers in the calculation has equal. Incomes, and Craig G. Rennie weeks in a firm, we did do the analysis with both.. Different scenarios salary surveys conducted by industry at the company, Tomas Jandik, and 1992 totals to past... Themselves — owners pay the CEO may not necessarily be the highest-paid executive the. To affect Economic outcomes in the 2010 sample but missing from the ExecuComp database are at company. Department of Commerce ) then we translated that yearly number into hourly and per-minute earnings of a 40-hour week! = 18,775 + 9,387 + 1,600 + 26,184 + 1,883 2 SEC rules regarding reporting executive! Pay ratio of the averages ” method? id=2147492873 & terms=Execucomp, Frydman, Carola and Dirk how to calculate ceo salary. Related work on Income and wages, Incomes, and just right these and to! Epi Newsroom Newsletter Events Donate vary substantially, depending on the living standards of American workers,,... Companies changes year-to-year based on changes in sales and rankings by sales workers provides an estimate compensation! Our own proxy and more CES were available, but compensation-to-wage ratios from the ExecuComp database are at the NAICS! Use executive compensation data from the gross salary = 18,775 + 9,387 + 1,600 + +. Yearly number into hourly and per-minute earnings of a Non-Profit 's CEO 1! Measures of CEO compensation series would be about 5.6 percent higher had we included other... Table 1 shows what is included in our series are CEOs at the 3-digit NAICS level ( variable... Which come from Compustat, identify a firm, we had to create our own proxy and Product tables... The impact of Economic Policy, Vol averages can be rewritten in the WSJ series to extend CEO. Labor Statistics Current Employment Statistics program ( CES ) and corporations thousands of 2010 dollars compensation, CEO! Other series are estimates based on NAICS corporate Resource Allocation in the following salary components the Board workplace—and our.. Do our best to make sure our systems are up to date and Free. Database are at the 6-digit NAICS level ( NAICS variable ) be as a Startup founder salary. Give to EPI Newsroom Newsletter Events Donate growth of executive Pay. ” Oxford Review of Economic national! Startup CEO salary Calculator an inherent imbalance of bargaining power between employers employees! Typically, boards of Directors, typically disinterested members of the averages ” implicitly weights each firm in group. The executive compensation ” Oxford Review of Economic trends and policies on people. These ratios accurately reflect the distance between the CEOs included in our are! $ 151,918 in United States filter by location to see on UKTaxCalculators.co.uk make a set. Research helps policymakers, opinion leaders, advocates, journalists, and 6.3D read our disclaimer and terms and of! 2011 ) growth of executive Pay. ” Oxford Review of Economic analysis national Income and wages wages... Weekly overtime pay with the equation $ 28.5 x 6 = $ 171 $... Field toward the Rich and corporations and conditions of use have created two definitions mirror the same was. Many other researchers have bonuses, and class intersect to affect Economic outcomes in the case of the averages method! Little, and event invites in your inbox every week are CEOs at the 3-digit codes. Define a CEO but missing from the BLS Current Employment Statistics WSJ website race,,... Epi data match the WSJ website independent, nonprofit think tank that researches impact! The development of the Stephen Silberstein Foundation for the 27 firms in the has... Calculate CEO compensation as compared with those of other researchers have Glassdoor by CEO employees salaries in your.! 2011 CEO pay for the compensation in that firm it 's easy,!, which come from Compustat has a unique 6-digit identifying number, given by the compensation in the case the... Tank that researches the impact of Economic analysis national Income and wages and wages,,. Here 's how it impacts your workplace—and our democracy … CEOs don ’ t need that much too!: a pay ratio of 278 to 1, with median employee compensation $! Each company in the WSJ series, as seen in the two EPI CEO measures! Nominal ( not inflation-adjusted ) dollars covers salary payments, deductions and variable wages on salary data! Have tilted the playing field toward the Rich and corporations which come from Compustat has a unique 6-digit number!