Firms now must provide a compensation discussion and analysis in the proxy statement which describes the specific items of corporate performance that are taken into account when making compensation decisions.

Compensation Discussion

An analysis or discussion centered around the policies and decisions related to executive compensation within an organization.

Proxy Statement

A document containing the information the Securities and Exchange Commission requires companies to provide to shareholders so they can make informed decisions about matters that will be discussed at an annual shareholder meeting.

Corporate Performance

An evaluation of a company’s ability to achieve its business goals and objectives, often measured through financial metrics, operational efficiency, and market position.