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

Harvard Business

” In 2012 the Commonwealth Bank restructured its evaluation system so that 75% of CEO incentives came from the bank’s total shareholder return (TSR), relative to a set peer group, and 25% from customer-satisfaction results, benchmarked against another peer group. I recommend using it in developing a corporate performance scorecard. On November 9, 2016, the shareholders of Australia’s largest company, and the world’s tenth-largest bank , revolted.

TSR 35

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. In our analysis of companies that generate a top-quartile TSR within their industry, two data points stand out.


Overcome Your Biases and Build a Great Team

Harvard Business Review

This requires total transparency in the way individuals are assessed, developed, and promoted. They have to be prepared to accept honest feedback on their development needs. I had an unlikely journey to the top. Born in India, I arrived in the U.S. in January 1968 as a young 22-year old with $8 in his pocket and an undergraduate degree in mechanical engineering from IIT Bombay. Thirty-one years later, I became Chairman and CEO of a global Fortune 300 company. How did this happen?

TSR 11