Author Archives for Michael Kesner and Jennifer Kwech

Three Key TSR Incentive Design Considerations

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As proxy advisors and shareholders continue to focus on improving the relationship between compensation and shareholder returns, and new pay for performance rules are finalized by the U.S. Securities and Exchange Commission, it is likely that more companies will consider adapting incentives based on Total Shareholder Return (TSR) principles. Ultimately, companies need to balance shareholder value creation with executive motivation and retention when deciding whether a TSR-based incentive plan is appropriate and aligns with the company’s compensation philosophy. If TSR is utilized in a performance-based award package, companies need to consider the following three factors: whether TSR should be measured... Read More