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Article
Publication date: 1 January 1994

Roger Brossy and John E. Balkcom

It sounds so simple: Just align executive compensation with a company's strategy—strategy being to make a profit, of course—and all with benefit. In looking at economic profit…

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Abstract

It sounds so simple: Just align executive compensation with a company's strategy—strategy being to make a profit, of course—and all with benefit. In looking at economic profit, there are several easily understandable measures of how well a company's strategy is doing: sales growth rate, incremental operating profit margin, free cash flow, cost of capital, and the ratio of return on equity to investor's required return.

Details

Journal of Business Strategy, vol. 15 no. 1
Type: Research Article
ISSN: 0275-6668

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