article thumbnail

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

Metrics 86
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
Insiders

Sign Up for our Newsletter

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

article thumbnail

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.

TSR 15
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 10
article thumbnail

Activist Hedge Funds Aren’t Good for Companies or Investors, So Why Do They Exist?

Harvard Business Review

activist hedge fund investments Allaire studied, the mean compound annual TSR for the activists was 12.4% If they can get their target sold, the compound annual TSR jumps from a lackluster 12.4% Total shareholder return is what the activist hedge funds claim to enhance. But for the universe of U.S. to a stupendous 94.3%.

Hedge 8
article thumbnail

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
article thumbnail

Corporate Purpose: Monumental Change Starts With Your Leadership

CO2

greater annualized total shareholder return (TSR) 7.7% Recent research has shown that “high purpose” companies — those who have a point of view on social issues, innovate with purpose, and have a commitment to society — outperform “low purpose companies.” For example, high purpose companies experience: 14.1% greater revenue growth 34.7%