article thumbnail

Corporate Purpose: Monumental Change Starts With Your Leadership

CO2

After all, your business’s future success depends not only on the health and longevity of the community in which you operate — but also on the health of our entire world. For this reason, margin is one of the best indicators of whether your organization operates according to its corporate purpose. greater revenue growth 34.7%

article thumbnail

Corporate Purpose: Monumental Change Starts With Your Leadership

CO2

After all, your business’s future success depends not only on the health and longevity of the community in which you operate — but also on the health of our entire world. For this reason, margin is one of the best indicators of whether your organization operates according to its corporate purpose. higher operating profitability.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

CEOs Must Model the Behavior for Creating Societal Value

Harvard Business Review

He changed "Market Total Shareholder Return" (M-TSR)" to "Operating Total Shareholder Return (O-TSR)." M-TSR measured the market return to shareholders based on the stock price appreciation plus dividends over a three-year period.

TSR 14
article thumbnail

Should a CEO’s Bonus Be Based on Financial Performance Alone?

Harvard Business Review

Other firms have ventured down this path, including the conglomerate Wesfarmers , with its 200,000-plus staff, and the global hospital operator Ramsay Health Care. Should CEO performance be assessed only on “hard” measures? Should soft measures be part of a CEO’s scorecard?

TSR 9
article thumbnail

Don't Blame Your Company's Poor Performance on Its Industry

Harvard Business Review

Indeed, our study shows that the biggest variations in TSR are not between industries but within them. But the TSR variations of companies within these industries were far greater: 44 percentage points in tobacco and 69 percentage points in computers and peripherals. For them, industry was not destiny. So how do the winners do it?

TSR 8
article thumbnail

Designing CEO Pay to Drive "Good" Behavior

Harvard Business Review

If CEOs are going to operate for stakeholder value — rather than just for shareholder value — then their pay ought to be structured in a way that supports them doing so. For long-term incentive plans, the dominant measure is total shareholder return (TSR). bonus plans, according to our research. The objective?

TSR 9
article thumbnail

Overcome Your Biases and Build a Great Team

Harvard Business Review

In the case of Rohm and Haas this process began in earnest in 1985 with the appointment of a Greek national, Dr. Basil Vassilou, to head our operations in Europe; followed by a Cuban, Henri Martinez, heading our Latin American operations starting in 1988; an Indian American (myself) heading up Asia Pacific operations in 1993.

Team 12