Compensation Peer Groups: Everything You Need to Know Right Now

The use of peer groups in benchmarking executive pay is ubiquitous. However, the construction of peer groups and how the data is used can vary greatly across companies. Furthermore, the proxy advisory firms often have their own peer groups for evaluating executive pay, causing potential disconnects between the data used by compensation committees in making pay decisions and the data used by the proxy advisory firms and their institutional investor clients in evaluating those pay decisions.

During this webcast with Pearl Meyer and the NACD, we outline the proper role of peer group data in compensation decision-making, key considerations when structuring a peer group, and how to maximize the impact of peer group information. This includes typical—and novel—approaches to compensation peer groups and the types of analyses and data that can be used by compensation committees to inform decision-making.