This is an English translation with new additions from the German book contribution “Krisensichere Leistungsmessung und Bonuspläne” in “Turnaround - Navigation in stürmischen Zeiten: Maßnahmen zur Krisenbewältigung und Auswirkungen auf die Rollen von CFOs und Controllern” by the...

Summary of findings from analyzing pay and performance for FTSE100 companies from 2009-2011 (3 years). Performance is measured by indexed Total Shareholder Return and indexed Operating Cash Flow Growth. CEO total realized pay is used as the proxy pay metric. The research findings were discussed...

Neither caps nor new regulations are the solution for excessive pay: the solution is indexing operating performance. The true culprit of excessive pay was neither ineffective governance nor bad bonus plans: it was excessive performance. To be fair, performance evaluations should differentiate...

In weekly intervals, the Swiss stock research firm Obermatt publishes the top 10 stocks in a stock index based on four different investment strategies. This report describes the results of a back testing of this method. It uses prior year year-end financials to identify top 10 stock tips for a...

There is widespread assumption that executives are greedy and that it is executive greed that has led to widespread spiralling executive pay. This paper offers an alternative explanation for today's extraordinary high levels of executive pay: Pay transparency.Pay transparency increases executive...

While the current financial crisis has challenged nearly everyone from management to media, it has exposed some fundamental flaws in management pay. In recent years, bonuses have been too high in up-cycles and they now risk being too low in the current downturn. Adopting an investor's...