The Advisors' Blog

This blog features wisdom from respected compensation consultants and lawyers

November 9, 2015

Peer Groups: How Companies Position Themselves

Broc Romanek, CompensationStandards.com

Here’s an excerpt from this Equilar press release:

According to our report, a majority of S&P 1500 companies paid their CEOs below the median of the peer groups they disclosed in proxy statements. The median ranking for S&P 1500 companies in terms of CEO total compensation relative to their peers was at the 46th percentile. (In other words, if this company at the median disclosed 100 peers, its CEO made more in total compensation than 46 of those peers.) On the other hand, S&P 500 companies compensated their CEOs slightly higher than their peers, and the median ranking for large cap companies in terms of pay compared to disclosed peers was at the 52nd percentile.