This article is an introduction to how companies can lay the foundation for long-term value creation. We will discuss three major steps they can take to achieve this goal. First, companies must develop a clear understanding of sustainable long-term value. Second, companies must have compensation plans that properly incentivize employees to create long-term value. Lastly, companies must attract investors Read More In Pursuit of Long-Term Sustainable Alpha
In the first article of this two-part series on hedging, we discussed two best practices in hedging policy management. In this article – part two of the series – we ask a precursor question: should my firm be hedging? The answer to this question will vary by firm and will depend on the circumstances surrounding the decision to hedge. Answering this question first requires asking a few other questions:Read More Should my Firm Hedge?
Ask a chief executive if value is important to him or her, and he or she will likely say yes. Ask if employees are important stakeholders in the enterprise, and the answer will almost certainly be yes. Yet, when it comes to incentive compensation, human resources will choose some type of profit sharing. This has Read More Profit or Value: What should we share?