Pay versus performance
Also called PvP, Item 402(v), pay vs performance.
The Item 402(v) proxy disclosure that compares compensation actually paid with company performance measures such as TSR. CompensationBase does not ingest this table.
What it is
Pay versus performance (PvP) is the Item 402(v) disclosure: a table of CAP for the PEO and average CAP for other NEOs, alongside total shareholder return, peer TSR, net income, and a company-selected measure, plus a description of the relationship between those series. It is a mandated comparison, not a CompensationBase score.
The catalog does not score pay against TSR or store the 402(v) table. Rankings remain SCT Total as filed. This page exists so PvP is not treated as the source of those rankings.
Why companies use it
Congress and the SEC wanted a standardized exhibit of whether compensation moved with performance. Companies produce the table because it is required in the proxy.
Issuers choose one “company-selected measure” (often a profitability or return metric already in the bonus plan) to tell a more tailored story than TSR alone.
Pros
- Forces a multi-year TSR series next to a pay series.
- CAP’s mark-to-market can show pain in a down tape.
- The company-selected measure lets an issuer highlight operating performance.
Cons
- “Performance” in the title is not a verdict CompensationBase repeats.
- Average other-NEO CAP blurs individuals.
- Peer TSR groups may not match the compensation peer group in the CD&A.
Examples
Where it lives
In the proxy, often after the SCT block. Look for “Pay Versus Performance.” The numbers will not match CompensationBase totals.
What this site does instead
About and methodology pages state that CompensationBase does not editorialize about pay-for-performance. PvP remains a filing you can open from the source link.
On CompensationBase
The catalog does not score pay against TSR or other performance measures, and it does not store the Item 402(v) table.
Related terms
- Compensation actually paid
A Pay Versus Performance figure that adjusts SCT amounts for equity fair-value changes and pension. It is not the SCT Total CompensationBase ranks.
- Item 402
The SEC disclosure item that requires the Summary Compensation Table and related executive pay tables. CompensationBase is an Item 402 SCT reader, not a Form 4 or 8-K pay feed.
- SEC Company Facts
Structured 10-K financials CompensationBase uses for revenue and assets. These figures are for company scale, not a pay-for-performance ratio.