Back to Basics: Fundamentals of Market Benchmarking
Description
On today’s episode, Jared Berman, Partner at Meridian Compensation Partners, LLC, unpacks the fundamentals of market benchmarking and peer group development, explaining why these building blocks are critical to executive compensation governance. From defining what the market for talent really means to exploring the nuances of selecting peer groups, Jared highlights the art and science behind designing fair and effective pay practices.
Key Takeaways:
00:00 Introduction.
02:00 Market benchmarking establishes reasonable executive pay.
04:11 Fair comparisons require companies of similar complexity.
05:13 Comparables provide structure in pay assessment.
06:34 Peer groups work best with a balanced sample.
08:08 Size matters but doesn’t always show complexity.
09:22 Broader factors such as reach and workforce refine groups.
10:05 Avoid selecting peers based only on performance.
12:07 Benchmarking centers on the most senior executives.
Resources Mentioned:
https://www.linkedin.com/in/jared-berman-3950884/
Meridian Compensation Partners, LLC
https://www.linkedin.com/company/meridian-compensation-partners-llc/
This episode is brought to you by Meridian Compensation Partners, LLC. Learn more by visiting MeridianCP.com.
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United States
