A company adopts a 'relative total shareholder return' (rTSR) metric for its long-term incentive plan. What peer group selection risk must be carefully managed?
-
A
Peers may use different accounting standards for TSR calculations
-
B
The peer group may be too similar, reducing meaningful differentiation
-
C
Peers may not have publicly traded stock to compare against
-
D
Selecting peers with higher headcount skews TSR comparisons