… O’Byrne © 2000 McGraw-Hill 493 pages … O’Byrne, management consultants who
largely steer clear of their industry’s usual empty catchphrases and superficial hype. Instead …

Mergers and acquisitions are clearly the favorite corporate growth strategy of this generation's
executive teams. But there is little evidence that such strategies have paid off for the …

This paper responds to the article by Biddle, Bowen, and Wallace (BBW) by suggesting that
their study of EVA and earnings has three potential shortcomings: 1 A closer look at BBW's …

Most companies rely heavily on earnings to measure operating performance, but earnings
growth has at least two important weaknesses as a proxy for investor wealth. Current …

Total compensation shall represent competitive levels of compensation… Performance‐
related pay shall be a significant component of total compensation placing a substantial …

Most investors are aware of economic profit concepts that compare company profits with the
opportunity cost of the capital used to generate those profits, but few investors try to compute …

The role of investor expectations in setting stock prices makes shareholder return a poor
measure of management performance.

Despite the wide acceptance of DCF valuation and its corollary that value is created only by
earning more than the cost of capital, very few companies use performance measures that …

… For more discussion of pay leverage calculations, see the Dow Chemical case below and
O’Byrne’s two articles, “Assessing Pay for Performance,” Conference Board Director Notes, vol …

… More detail on this case is available in O’Byrne, Stephen F. and E. Mark Gressle (2013), “How
Competitive Pay Undermines Pay for Performance (and How Companies Can Avoid That),…