Here’s an interesting note from the latest Semler Brossy newsletter:

Secondary peer groups — ”Supplemental peers,” “Reference peers,” etc. — are more prevalent now because they can contextualize programs and practices in the broader talent market. For example, the pay programs, performance leverage, and equity usage at industry-dominant companies are important information, even if the value of CEO pay is not a valid comparison.

Questions for the board:

1. Does the primary peer group sufficiently reflect sources and destinations of executive talent?

2. Is information from a broader group useful?

Members can visit our “Peer Groups” Practice Area for more info on creating and using peer groups.

– Liz Dunshee