Executive Compensation

Rethinking Relative TSR in a Volatile Market

By Adam Hearn and Madelyn Ingold

09/15/2025

Partner Content Provided by Meridian Compensation Partners, LLC.
Directorship Magazine Executive Compensation Member-Only

As market uncertainties persist, boards are reevaluating the role of relative total shareholder return (TSR) in executive incentive plans. This article explores the strengths and weaknesses of relative TSR, particularly the challenges with maintaining a clear line of sight between pay and performance and identifying appropriate comparator groups.

Discover how boards can navigate these complexities by considering alternative incentive designs, such as incorporating absolute TSR hurdles or using relative TSR as a modifier. 

Thank you for your interest in this page.

Member-Only Content

For full access, please log in, or explore membership options.

Adam Hearn

 

 

Adam Hearn is a principal at the executive compensation consulting firm Meridian Compensation Partners. 

Madelyn Ingold

 

 

Madelyn Ingold is a consultant at the executive compensation consulting firm Meridian Compensation Partners.

Meridian Compensation Partners is a NACD partner, providing directors with critical and timely information, and perspectives. Meridian Compensation Partners is a financial supporter of the NACD.