Peer Group TSR
Peer group TSR is the pay-versus-performance table's comparison column: the same $100-investment return measure, computed for the company's disclosed peer group or a published industry index.
What it's for
Item 402(v) pairs company TSR with peer TSR so a reader can tell whether executive pay tracked the company's own performance or the whole sector's. A CEO whose CAP rose while peer TSR rose just as fast was paid for the tide, not the swimming.
Companies choose either their compensation peer group (as disclosed in the CD&A) or a published industry line-of-business index; the choice is disclosed in a footnote.
Frequently asked
Who picks the peer group?
The company, from its own disclosed compensation peer group or a published index. Different filers make different choices, so peer TSR is comparable within a filing, not across filers.
Related terms
Next term: CEO Pay Ratio (6 of 15)