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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. Aligning Core Systems. However, signals can be undermined if key systems contradict the signals. Setting a Personal Example.

TSR 14
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Corporate Purpose: Monumental Change Starts With Your Leadership

CO2

greater annualized total shareholder return (TSR) 7.7% They define your shared belief system. A masterful leader identifies ways to better align people and systems to achieve the organization’s purpose. 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). They define your shared belief system. A masterful leader identifies ways to better align people and systems to achieve the organization’s purpose. For example, high purpose companies experience: 14.1% greater revenue growth. higher operating profitability.

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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 9
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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?

TSR 8
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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. For long-term incentive plans, the dominant measure is total shareholder return (TSR). Too frequently, the focus of executive pay discussions is on levels of pay — the "how much" — rather than the mechanisms of pay — the "how."

TSR 10
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GE’s Fall Has Been Accelerated by Two Problems. Most Other Big Companies Face Them, Too.

Harvard Business Review

the day after Flannery’s latest announcement, Trian’s TSR on its investment in “helping” GE is approximately minus 36% (giving credit for $2.47 The happiest folks out there are probably GE Healthcare’s two big global competitors, Philips and Siemens Healthineers. And with the stock closing at $13.96

TSR 10