key performance indicator investment & finance definition

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.