Tag Archives: incentive-compensation

Relative Performance Evaluation and the Peer Group Opportunity Set

By | July 19, 2021

The use of incentive-compensation practices based on relative performance has grown dramatically in recent years (see Figure 1). As of 2019, more than 50% of large U.S. firms base executive compensation in part on their firms’ performance relative to peer firms, compared to just 20% in 2006. Further, relative total shareholder return (“TSR”) is now… Read More »