November 16, 2009
Equilar’s New Peer Group Study
– Broc Romanek, CompensationStandards.com
Recently, Equilar released a “Fortune 500 Peer Group Report” (you can request a copy). As noted in this press release, the findings include:
– Among the Fortune 500, 27.2% of peer groups have between 16 and 20 companies listed
– The average peer group size is 24 while the median size of peer groups is 19 companies
– Most companies benchmark to peers one-half to two times their size
– 24% of companies named as peers also show up as peers of peers (2nd-degree peers)
– Most companies are used in a peer group at least 10 times
– The industries with the largest average number of stated peers in a group were Industrials with 35, Utilities with 28 and Services along with Technology both having 26
In this article, Bud Crystal gives his thoughts on Equilar’s new study…