Compensation Committees are taking a more active role in reviewing and approving the peer groups used for market-based benchmarking of executive pay. This can often lead to internal disagreements between Committee members and management because executives may have a more aspirational view of appropriate comparator companies.
In this overview article, “Can You Manage Peer Group Disputes?” (originally published in NACD Directorship magazine), Pearl Meyer Principal Bill Reilly approaches that can help organizations address and resolve conflicts related to peer group composition.