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CEOs Must Model the Behavior for Creating Societal Value

Harvard Business Review

CEOs can use both signals and systems as powerful levers in tilting the focus of their company toward long-term societal value creation — which will take care of their shareholders perfectly well. Because people in organizations watch what their leader does and follow suit, the CEO wields a powerful lever: modeling desired behaviors.

TSR 14
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Designing CEO Pay to Drive "Good" Behavior

Harvard Business Review

This blog post is part of the HBR Online Forum The CEO's Role in Fixing the System. 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. Today, U.S. executive pay is structured for the latter.

TSR 10
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The Best Indian CEO List: Youth and Education Rank High

Harvard Business Review

Who are the best-performing CEOs in India? The first-ever ranking of Indian CEOs based on the long-term shareholder returns they generate (available here and published in Business Today , an Indian business magazine) provides an interesting answer. But it is the fundamental scorecard for CEOs of public companies.

CEO 14
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Should a CEO’s Bonus Be Based on Financial Performance Alone?

Harvard Business Review

The Commonwealth Bank’s shareholders were reacting to the board’s annual Remuneration Report, which contained a recommendation that the CEO be granted a bonus based on what critics saw as “soft” measures. Should CEO performance be assessed only on “hard” measures?

TSR 9
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Corporate Purpose: Monumental Change Starts With Your Leadership

CO2

greater annualized total shareholder return (TSR) 7.7% Recent research has shown that “high purpose” companies — those who have a point of view on social issues, innovate with purpose, and have a commitment to society — outperform “low purpose companies.” For example, high purpose companies experience: 14.1% greater revenue growth 34.7%

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Corporate Purpose: Monumental Change Starts With Your Leadership

CO2

greater annualized total shareholder return (TSR). Recent research has shown that “high purpose” companies — those who have a point of view on social issues, innovate with purpose, and have a commitment to society — outperform “low purpose companies.” For example, high purpose companies experience: 14.1% greater revenue growth.

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Activist Hedge Funds Aren’t Good for Companies or Investors, So Why Do They Exist?

Harvard Business Review

But they are utterly reviled by CEOs. activist hedge fund investments Allaire studied, the mean compound annual TSR for the activists was 12.4% If they can get their target sold, the compound annual TSR jumps from a lackluster 12.4% And at best, their performance is ambiguous. But for the universe of U.S. to a stupendous 94.3%.

Hedge 8