The L-Blast | October 2021
Reassessing Compensation Peer Groups
Peer group selection has always played a key role in the executive compensation planning process. While peer group composition may have been somewhat static in previous years, companies are now at a point in which reassessment is critical. The pandemic has impacted a series of strategic factors such as increased M&A activity and bankruptcies, decreased valuations, and industry consolidation to name a few. These changes require rethinking previous peer selection strategies to ensure compensation decisions are effective in the current environment.
In this month’s L-Blast we share articles that will aid companies in their peer group selection process and highlight important factors to consider. We hope you find this information helpful and can draw from this guidance. As always, let us know if you have any questions regarding the topics covered in this L-Blast, or if you need help with your peer group selection strategy.
Peer vs. Competitor: The Importance of Distinction for Executive Compensation
Impacts of a global pandemic, volatility in the markets, bankruptcies and consolidation through M&A activity has created a new business landscape…one no industry has completed escaped. The one area this impacts meaningfully is peer selection for compensation peer groups.
READ MOREDo You Have the Right Compensation Peer Group?
Given the heightened scrutiny on executive compensation, it is increasingly important for compensation committees to ensure that they have an appropriate peer group for comparison purposes. A carefully selected and assembled peer group can provide information that is critical to decision making on compensation…
Understand Glass Lewis’ Approach to Peer Groups
Effective January 1, 2020, Glass Lewis’ Pay-for-Performance Model introduced an enhanced peer group methodology that is proprietary to Glass Lewis and leverages the global compensation data and analytics tools of our global partner Diligent. The rest of the model continues to operate as it did previously.
READ MORERead More
We are Rebranding as NFP Compensation Consulting.
Our transition is underway, including a new website. We will communicate further details as they become available. Thank you for your patience and support during this time.
