In response to regulations that took effect following the passage of the Dodd-Frank Act, as well as pressure from proxy advisers and investors, it became common practice for executive compensation to be based on company performance.
Relative total shareholder return (rTSR) — a measure of TSR compared with that of other companies, usually a peer group of some kind — emerged as the leading metric for determining long-term incentive payouts for named executive officers. READ MORE