key performance indicator

key performance indicator definition - finance
Measure-ments such as market share growth, number of new products launched, number of stores opened, or any other benchmarks that show how well a company is performing. The concept of key performance indicators was forwarded with the passage of corporate governance reform proposals that became law in 2002 through the passage of the Sarbanes-Oxley legislation. When companies report key performance indicators, investors know what criteria company management is looking at to judge its success and progress.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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