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- W2499123448 abstract "One method of establishing competitive compensation is through using peer groups and benchmarking. Although peer groups for the purpose of determining executive compensation levels generally include companies of comparable size based upon revenues, other factors may also be used to select a peer group if they are relevant from a business viewpoint. These other factors include the number of employees, asset size, units of production, operating complexity, geographic consideration, growth attributes and market capitalization. It is important to examine any proposed peer group for outliers and unique situations. A founder CEO, or one with a large ownership position, may be paid very differently than other comparators. Other factors may include the scope of responsibility, perceived competence, experience, and ability. “How are these people similar to executives?” is an important question to consider. This chapter reviews the best practices in establishing peer groups and benchmarking, the use of which help avoid “headline risk” for the company." @default.
- W2499123448 created "2016-08-23" @default.
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- W2499123448 date "2012-01-02" @default.
- W2499123448 modified "2023-09-23" @default.
- W2499123448 title "Peer groups and Benchmarking" @default.
- W2499123448 doi "https://doi.org/10.1002/9781119197621.ch3" @default.
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