Company-Selected Measure
The company-selected measure is the one performance metric a company itself picks to sit alongside TSR and net income in the pay-versus-performance table.
The company's own yardstick
Item 402(v) requires a 'company-selected measure' — the single most important financial performance measure (by weight) used in executive pay decisions that year. Common choices: adjusted EPS, adjusted EBITDA, revenue, or a composite score.
Because each company defines its own measure, the column is meaningful within a filing (does CAP track the metric the board actually used?) but not directly comparable across companies.
Frequently asked
Why do companies pick different measures?
The rule asks for the measure most important to pay decisions for that company, which genuinely differs: a bank may pick ROTCE, a retailer comparable sales, a biotech milestone progress. Non-GAAP definitions are permitted and disclosed in footnotes.
Related terms
Next term: Clawback Policy (8 of 15)