Interesting perspective on CEO pay from Fortune - some salient points on how Boards consider one group of organizations as "peers" for setting pay, and another for setting targets.
First, the peers often aren’t really peers. As Clifford recounts, to set its CEO’s pay, UnitedHealth Group (UNH, +0.84%) recently used a “peer” group stuffed with companies unrelated to health insurance, such as Apple (AAPL, -0.44%), Coca-Cola (KO, +0.95%), and Citigroup (C, -0.97%). It’s ludicrous to think that UnitedHealth’s CEO could be a candidate to run Apple. It assumes a generic market for CEOs that doesn’t exist.