Is the Love Affair with TSR Over?
This must-see program will focus on the role of “Total Shareholder Return,” (TSR) in Long-Term Executive Compensation Plans. TSR remains the most frequently used financial metric by U.S. company boards according the latest NACD survey. Use of TSR rose rapidly over the past decade in response to shareholder pressure, yet its use has recently diminished to just over 50% of boards surveyed by NACD. Why is TSR losing favor? What are Compensation Committees adding to supplement or replace it? Why do almost half of U.S. boards indicate that strengthening performance metrics is a key priority? We will explore these questions on March 15th with a stellar group of panelists:
Glenn Booraem, principal of the Vanguard Group and leader of their corporate governance program
Jan Koors, Managing Director with Pearl Meyer in Chicago
Mylle Mangum, Chief Executive Officer [100% owner] with IBT Holdings
Bennett Stewart, CEO of EVA Dimensions and author of “Best Practice EVA” and the NACD blog: “What’s Wrong with TSR…and How to Fix It?”
To set the stage, Pearl Meyer will share provocative new research in partnership with Cornell, challenging the notion that use of TSR correlates with long-term business performance.
Location and Time
The Buckhead Club
3344 Peachtree Road
Atlanta, GA 30326
Glenn BooraemGlenn Booraem is a Principal of the Vanguard Group, Inc. and the Treasurer of each of the Vanguard Funds. He has worked for Vanguard since 1989, where he currently leads the firm's corporate governance program covering nearly US$4 trillion in assets under management. He is a periodic speaker on governance to industry groups, and has served most recently on the NACD’s Blue Ribbon Commission on Building the Strategic Asset Board (2016). Glenn has also served on the New York Stock Exchange’s Proxy Working Group and Commission on Corporate Governance, as well as on the Advisory Board on Corporate/Investor Engagement for The Conference Board Governance Center and the Working Group for the SDX (Shareholder/Director Exchange) Protocol. Glenn has been recognized for the past 6 years (2011-2016) on the NACD’s Directorship 100 list of the “most influential people in corporate governance.” Glenn earned a B.B.A. from Temple University, and he is a graduate of the Advanced Management Program at Harvard Business School.
Jannice KoorsMs. Koors is a managing director with Pearl Meyer and leads the Chicago office. She has more than 25 years of experience in executive compensation and governance, and has consulted to companies of all sizes and industries. She advises company boards and management teams on all aspects of executive and director compensation design, performance measure selection and calibration, and related corporate governance issues. She is also responsible for the firm’s annual Director Compensation Study, published in conjunction with the NACD. A noted expert in the field, Ms. Koors has been quoted in publications such as The New York Times, The Wall Street Journal, and Financial Times. She has appeared on CNN’s MoneyLine, NBC Nightly News, and has spoken at numerous seminars on executive and director compensation issues. Ms. Koors is an NACD Governance Fellow, and serves as faculty for the NACD’s Director Professionalism and Master Class programs. In 2015, she was named for the sixth time to the D100 list of the most influential people in corporate governance.
Mylle MangumFor almost 17 years, Mylle has been Chief Executive Officer and owner of IBT Holdings. IBT is the leader in designing and building retail environments for bank branches, specialty retail and mixed-use concepts. The pioneer of in-store banking, IBT offers domain expertise in a comprehensive range of integrated services, including retail distribution strategy, design, architecture and construction for in-store, storefront and brick and mortar facilities. The portfolio of companies also includes real estate leasing and international construction dispute resolution. Clients include Bank of America, JPMorgan Chase, Starbucks, Wells Fargo and Walmart. Prior to this, Mylle, served in high ranking positions in private equity companies involved in marketing services and in the high technology area, as well as the travel industry. Mylle earned a B.A. Degree from Emory University in 1970. Directorships include Barnes Group, Inc. - Chair, Compensation and Management Development Committee; Express, Inc. - Chairman and Audit Committee; Haverty Furniture Companies, Inc. - Chair, Executive Compensation/Employee Benefits Committee; PRGX Global, Inc. - Chair, Nominating and Corporate Governance Committee; The Shopping Center Group - Chair, Compensation Committee Past Board Service includes Payless ShoeSource/Collective Brands, Inc., Scientific Atlanta, Matria Healthcare, Respironics, Emageon, Reynolds Metals, Carpenter Technology Awards/Honors include Entrepreneur of the Year regional award winner 2009 (Ernst & Young), Entrepreneur of the Year regional award nominee 2008, Inc. 5000 list 2007 through 2009, Named Woman of the Year in Technology 2004 (Technology Association of Georgia's Women in Technology Group), Included as one of the 100 Most Influential Atlantans in 2000 (Atlanta Business Chronicle)
Bennett StewartBennett Stewart is the founder and CEO of EVA Dimensions. Based in New York, the firm provides custom financial data, software tools, and training and support services that enable corporate managers and investors to make better decisions and enhance returns with the power of the firm’s proprietary EVA – economic value added – framework. Bennett initially unveiled the EVA management model with his 1991 book, The Quest for Value (Harper Business), which led to its appearance on the cover of Fortune in September 1993 with the tag line: “EVA – It’s the Real Key to Creating Wealth.“ Bennett recently provided a major update of EVA with his 2013 book, Best-Practice EVA (John Wiley). Besides assisting hundreds of companies to adopt EVA as their financial beacon, including Dow Chemical and Pepsico in recent years, Bennett invented CPI, the corporate performance index of financial excellence that offers a practical counterpoint to TSR. He also developed the firm’s stock rating model, called PRVit, standing for the performance-risk-valuation investment technology, which uses a total of 24 EVA metrics to develop a buy-sell-hold percentile score. A separate wing of EVA Dimensions uses EVA and PRVit to counsel institutional fund managers to make better, and better informed, buy-sell decisions. A version of PRVit is also available to clients of Fidelity at Fidelity.com. Bennett is the former chairman of the advisory council for Princeton University’s Department of Operations Research and Financial Engineering. He currently serves on the advisory board of the Journal of Applied Corporate Finance. He was a director of ITC Holdings (NYSE:ITC), the nation’s largest independent electric transmission company, from 2006 until its sale in 2016 to Fortis.