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. Compensation Corporate social responsibility Leadership TSR ISSThis blog post is part of the HBR Online Forum The CEO's Role in Fixing the System.

The Best Indian CEO List: Youth and Education Rank High

Harvard Business Review

During his tenure, Naveen Jindal has delivered a staggering total shareholder return (TSR) of 13,784%, increasing JSPL's market capitalisation by Rs 606 billion (about US $12.1 Global business India Leadership JSPL TSR HDFCThis post is part of the HBR Insight Center, The Next Generation of Global Leaders. Who are the best-performing CEOs in India?

Insiders

Sign Up for our Newsletter

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

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 48

How This Lingerie Store Boosted its Bottom Line, Despite the Downturn

Harvard Business Review

The findings revealed that a group of companies emerged with higher total shareholder return (TSR) than their peers post-recession. Customers Recession Retail TSRJournelle in New York City is no ordinary store. Among its intimate apparel store peers — who are in the business of helping women find the perfect undergarments through a sometimes thrilling and at other times exasperating process — Journelle stands out.

Say on Pay in 2011, and What to Expect for 2012

Harvard Business Review

We found that investors voted "no" on Say on Pay for four primary reasons: A disconnect between pay and performance (92 percent), with performance generally defined as relative and absolute Total Shareholder Return (TSR) over one, three, and five years; or financial performance, such as revenue and earnings growth, over multi-year timeframes. Boards Compensation Transparency CII TSR

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. On November 9, 2016, the shareholders of Australia’s largest company, and the world’s tenth-largest bank , revolted.

TSR 47

CEOs Must Model the Behavior for Creating Societal Value

Harvard Business Review

He changed "Market Total Shareholder Return" (M-TSR)" to "Operating Total Shareholder Return (O-TSR)." M-TSR measured the market return to shareholders based on the stock price appreciation plus dividends over a three-year period. O-TSR measured three elements associated with the long-term improvement in the value of the business: sales growth, profit margin improvement, and increase in capital efficiency.

TSR 17

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

Harvard Business

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 hbr staff/stan honda/Getty Images.

TSR 47

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.

TSR 8

How This Lingerie Store Boosted its Bottom Line, Despite the Downturn

Harvard Business Review

The findings revealed that a group of companies emerged with higher total shareholder return (TSR) than their peers post-recession. Journelle in New York City is no ordinary store. Among its intimate apparel store peers — who are in the business of helping women find the perfect undergarments through a sometimes thrilling and at other times exasperating process — Journelle stands out.

TSR 17

Overcome Your Biases and Build a Great Team

Harvard Business Review

Over the course of our 15-year diversity journey, our company performance far exceeded the S&P 500 as measured by Total Shareholder Return (TSR)—our 15-year return ending March 31, 2009 was 13% compared their 6%; our 10 year return was 12% compared to their -3% ; and our 5-year return of 18% was off the charts compared with the S&P’s -5%. I had an unlikely journey to the top. Born in India, I arrived in the U.S.

TSR 12