EVA for Corporate Management

EVA Articles

Abandon Earnings-Per-Share

Bennett Stewart | 2011-10-21

The most popular way to score corporate performance is with earnings per share, or EPS for short.  It’s the authorized, mandated, regulated version of profit as computed according to generally accepted accounting principles. But while EPS certainly wins on tradition and establishment connections, it loses on every other count. It is riddled with pitfalls and pratfalls that make it a highly unreliable measure of value and a misleading guide to corporate performance. Its time has come and gone, and it must go.

Executive Summary: What Really Determines Total Shareholder Return?

Bennett Stewart | 2011-10-21

TSR has become an increasingly important metric.  But what really determines TSR?  How can boards and business leaders best structure incentives and manage the business and grade plans to ensure the firm delivers outstanding shareholder returns?  In this paper, Bennett Stewart discusses a breakthrough derivation that traces TSR from dividends and capital gains directly to earning and increasing EVA.  In short, if TSR is the question, then EVA is a very good answer every company should consider