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Linking Executive Pay To Climate Change Metrics

The Horizons Tracker

Unlike traditional metrics like TSR (total shareholder return), climate-linked incentives in the energy industry so far do not include evaluation against a peer group,” the researchers explain. “As Use actionable performance measures that reflect the added value that management can bring to influence them.

Metrics 85
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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. He changed "Market Total Shareholder Return" (M-TSR)" to "Operating Total Shareholder Return (O-TSR)."

TSR 14
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Corporate Purpose: Monumental Change Starts With Your Leadership

CO2

In fact, long-term business viability depends on it. greater annualized total shareholder return (TSR). The hike is long, tiring, and full of obstacles. Long view: Can we continue to work toward this for years to come? Every company needs a corporate purpose. For example, high purpose companies experience: 14.1%

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Corporate Purpose: Monumental Change Starts With Your Leadership

CO2

In fact, long-term business viability depends on it. greater annualized total shareholder return (TSR) 7.7% The hike is long, tiring, and full of obstacles. Long view: Can we continue to work toward this for years to come? Every company needs a corporate purpose. For example, high purpose companies experience: 14.1%

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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 10
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Designing CEO Pay to Drive "Good" Behavior

Harvard Business Review

companies receive more than half of their annual pay value in long-term incentive — typically equity — compensation. In Europe, that long-term incentive makes up roughly one-third of the pay. For long-term incentive plans, the dominant measure is total shareholder return (TSR).

CEO 10
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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?