Création de valeur, 10 ans après…
AbstractValue based management was considered as the major managerial innovation of the nineties: managers were to supposed to be turned into owners through redesigned compensation packages including value creation metrics such as EVA and the like, increased influence of shareholders on firms’ strategies… Ten years later it is about time to come back. This article indeed revisits a study made at the time by the authors on the implementation of VBM and analyzes the evolutions observed since then. It identifies the main achievements such as the better management of assets and cost of capital, and the difficulties encountered in the alignment of managers’ compensation on market value. It discusses the current trend towards more operational performance indicators in that respect.
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Bibliographic InfoPaper provided by ESSEC Research Center, ESSEC Business School in its series ESSEC Working Papers with number DR 09013.
Length: 17 pages
Date of creation: Dec 2009
Date of revision:
Governance; Incentives; Value Creation;
Find related papers by JEL classification:
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
- M00 - Business Administration and Business Economics; Marketing; Accounting - - General - - - General
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