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SVA
in HBR
SVA President Steve
O'Byrne and INSEAD Professor David Young show that current and expected
future pay make little contribution to top management's incentive to
increase shareholder value in 'Why Executive Pay is Failing' in the
Harvard Business Review. The vast majority of top management's
shareholder value incentive comes from its stock and option holdings.
To use pay effectively, companies need to give managers fixed share
interests in stock appreciation and economic profit improvement and
abandon competitive pay policies that create incentives for value-less
revenue growth.
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What
Investors Need to Know about Executive Pay
In
a Journal of Investing article on "What Investors Need to
Know about Executive Pay" Steve O'Byrne and David Young show how
investors can calculate comprehensive measures of top management's incentive
to increase shareholder value and its incentive for value-less revenue
growth. They explain the flaws of the conventional approach to executive
pay and present their research on the impact of top management "wealth
leverage" on company performance.
Listen
to O’Byrne’s 5 minute video summary on the Journal of Investing
website (click tab #2 on the lower right of the video panel in the center
of the Journal’s web page).
The
Journal of Investing
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SVA in The Crystal Report
Bud Crystal writes
that "Steve O'Byrne is performing important research that should
get compensation committees and compensation directors 'doing pay-for-performance',
instead of just talking about it in airy terms".
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How to Measure Compensation
Efficiency
Executive pay plans involve complex tradeoffs between
incentive strength, shareholder cost and talent retention. The efficiency
of your plan in accomplishing all three objectives can be measured.
Here's how...
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SVA in Fortune
Steve O'Byrne explains how to
increase pay for performance in a Fortune Magazine article...
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The Impact of Top Management Incentives on Corporate
Performance
Read the
Journal of Applied Corporate Finance article outlining our concept
of wealth leverage and learn the true strength of corporate pay for
performance...
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