Jim and Chris discuss total shareholder return (TSR) as a long-term incentive metric, when to use it and some challenges associated with it.
We focus on:
– What exactly is TSR and what does it measure?
– How frequently TSR is used and which industries use it most.
– The reasons why a company would consider using TSR.
– Common challenges with TSR.
– Using TSR as an absolute metric.
– Key trends around TSR and its use in long-term incentive plans.