article thumbnail

Corporate Purpose: Monumental Change Starts With Your Leadership

CO2

The founder who started the company might still be involved, and their presence and leadership help the purpose remain clear. greater annualized total shareholder return (TSR) 7.7% But without effective leadership, corporate purpose feels abstract and disconnected from an employee’s day-to-day job. greater revenue growth 34.7%

article thumbnail

Corporate Purpose: Monumental Change Starts With Your Leadership

CO2

The founder who started the company might still be involved, and their presence and leadership help the purpose remain clear. greater annualized total shareholder return (TSR). But without effective leadership, corporate purpose feels abstract and disconnected from an employee’s day-to-day job. greater revenue growth.

Insiders

Sign Up for our Newsletter

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

article thumbnail

Silence Kills: Are You Fostering Cowardly Communication?

The Practical Leader

The CEB study found companies “where employees provide honest feedback substantially outperformed their peers in terms of 10-year TSR (Total Shareholder Return) from 1998–2008. We found that companies rated by their employees in the top quartile in terms of openness of communication have delivered TSR (10-year TSR 1998–2008) of 7.9%

TSR 58
article thumbnail

CEOs Must Model the Behavior for Creating Societal Value

Harvard Business Review

As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper.". He changed "Market Total Shareholder Return" (M-TSR)" to "Operating Total Shareholder Return (O-TSR)." Aligning Core Systems.

TSR 14
article thumbnail

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

Harvard Business Review

” 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. ” Now a full 50% of the assessment was subjective. .”

TSR 9
article thumbnail

Designing CEO Pay to Drive "Good" Behavior

Harvard Business Review

For long-term incentive plans, the dominant measure is total shareholder return (TSR). The primary measurement it uses in its recommendation on each company's advisory 'say on pay' vote is the movement of the CEO's pay in relation to the company's one- and three-year TSR. bonus plans, according to our research. The objective?

TSR 10
article thumbnail

The Best Indian CEO List: Youth and Education Rank High

Harvard Business Review

This answer is premised on the notion that the most objective test of a CEO's leadership ought to be how the company does during his or her full tenure at the helm, rather than the latest quarterly earnings of the company or the CEO's power, family pedigree or positive media coverage. The young professionals.

CEO 14