Perspective: Responsible peer group selection: A guide for assessing executive pay

As executive compensation has come under shareholder scrutiny, questions often concern whether public companies use the correct peer group to set pay levels. In response to this shareholder concern, the Securities and Exchange Commission now requires more transparency about the peer groups used to assess competitive pay practices as part of the Compensation Discussion and Analysis report in annual proxy statements. This Perspective discusses the keys to effective peer group selection and strategies for developing a defensible peer group for setting executive pay.  (Perspective, 6 Apr 2007, 1 page)

• Full Perspective (PDF)

---