Posts Tagged ‘peer groups’

Of Peers and Paradoxes


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Expert perspective by Grahall’s Editorial Boards

expert perspective telescopeThe August 17th Wall Street Journal article “Picking Big ‘Peers’ to Set Pay” by Cari Tuna effectively outlines the practice by many companies of including “…bigger and more complex rivals in compensation peer groups used as a factor in setting pay, helping to boost executive paychecks.”  

Use of peer group comparisons as one aspect of determining executive pay is far from an unusual practice, but without careful consideration it can be easily misused in exactly the way that Ms. Tuna’s article outlines.
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Filed under: Expert Perspective

Picking Big ‘Peers’ to Set Pay


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Published in The Wall Street Journal August 17, 2009 by Cari Tuna

Tootsie Roll Industries Inc. posted $496 million in sales last year. At Kraft Foods Inc., sales totaled $42.2 billion, about 85 times as much. Yet Tootsie Roll considers Kraft a “peer” when deciding how much to pay its top executives.

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