A Better Way to Assess Managerial Performance
Total shareholder return (TSR) has become the definitive metric for gauging performance. Unlike accounting measures such as revenue growth or earnings per share that reflect the past, TSR is based on share price and thus captures investor expectations of what will happen in the future, which is its…
✒ To address the potential distortion to the Total Shareholder Return (TSR) due to share buybacks and dividend distributions, the authors propose a new metric — core operating shareholder returns — that emphasises operational performance.