Peer Group Selection Trends Among the Largest U.S. Companies

June 3, 2026

Joyce Chen

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Each year, public companies face growing pressure to demonstrate that their executive compensation programs are both competitive and aligned with shareholder interests. One of the most important tools for achieving this alignment is the peer group. More than a simple list of comparable companies, a peer group helps boards evaluate executive pay, assess corporate performance and benchmark the company’s position within its industry. As market conditions and investor expectations continue to change, reassessing peer groups regularly has become essential for maintaining credibility and supporting strong corporate governance.

Under SEC requirements, public companies must disclose both their peer groups and the criteria used to select them. The following analysis studies trends in peer group disclosure among Equilar 500 companies in 2025 and provides insight into how organizations are approaching peer selection.

Among Equilar 500 companies, five was the most commonly disclosed number of peer selection criteria in 2025, reported by 24.8% of companies. Overall, 79% of companies disclosed between three and six peer selection criteria, while only 8% disclosed more than six.

Figure 1: Count of Disclosed Peer Group Criteria (Equilar 500)

Peer Group Criteria	Percentage of Companies
0	1.4
1	3.8
2	7.8
3	13.8
4	22.0
5	24.8
6	18.4
7	5.6
8	2.4

Industry was the most commonly used peer group criterion across the Equilar 500, selected by 89.2% of companies. Revenue, talent and market capitalization followed closely behind, each used by at least 70% of companies. Industry alignment helps ensure meaningful business comparisons, while revenue and market capitalization provide insight into organizational scale and complexity. The frequent use of talent as a selection criterion also highlights the importance of competing for executive leadership within a similar labor market.

Figure 2: Peer Group Criteria (Equilar 500)

Sector	Percentage of Companies
Industry	89.2
Revenue	81.4
Talent	73.6
Market Cap	70.6
Business Model	34.6
Competitors	30.0
Geography	23.2
Assets	18.0
Employees	15.6
Profitability	5.4

As expected, industry ranked as the most frequently used peer group selection criterion in eight of the 11 sectors examined in this study. Revenue was the second most commonly used criterion across sectors, highlighting its value as a benchmark for financial health across organizations. Business model ranked fifth overall among peer group selection criteria. While it's not as universally applicable as industry or revenue, business model considerations enable companies to identify peers with similar operational structures and growth strategies.

Figure 3: Most Used Criteria by Sector (Equilar 500)

Beyond determining which companies belong in a peer group, organizations must also decide how many peers to include, as peer group size can influence the quality and reliability of benchmarking outcomes. A well-constructed peer group should be large enough to provide a meaningful range of market data while remaining focused on companies with comparable business and operating characteristics.

Among Equilar 500 companies, peer groups featuring 16 to 18 companies were the most common, selected by 29.4% of companies. Peer groups consisting of 13 to 15 companies were the next most prevalent, used by 23.4% of companies. At the opposite end of the spectrum, relatively few companies relied on particularly large or small peer groups. Just 10.4% disclosed peer groups with 22 or more companies, while 12% included 12 or fewer peers. Additionally, 8.2% of companies did not disclose a peer group.

Figure 4: Peer Group Size (Equilar 500)

Peer Group Size	Percentage of Companies
0	8.2
1-3	0.2
4-6	0.6
7-9	3.0
10-12	8.2
13-15	23.4
16-18	29.4
19-21	16.6
22-24	5.0
25-27	2.6
28-30	0.4
31+	2.4

As scrutiny of pay practices and governance standards continues to grow, maintaining well-defined peer groups will remain a critical component of effective compensation oversight. Thoughtfully constructed peer groups provide meaningful benchmarks for executive compensation and corporate performance while helping companies communicate their pay philosophies and governance practices more clearly to investors and other stakeholders.

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