Management Effectiveness, Shareholder Value
Research
Original research complements our extensive experience in corporate advisory work, as well as contributes to the academic literature regarding the finance and compensation issues of corporate governance. It is used by the investment community to distinguish the effectiveness of management and governance at publicly traded companies.
Applications:
We don't just propose good ideas or spread common practices, we implement finance and compensation policies proven to make a difference to shareowners. To do that requires empirical answers to tough questions. Our management experience gives us an edge in asking the right questions. Our consulting and academic experience gives us the tools to find the right answers.
Our research generates specific indicators that allow investors to reliably differentiate management effectiveness among publicly traded companies. Investments based on our indicators provide significantly higher relative stock price performance over time, uncorrelated with any other metrics or market indicators.
Our sophisticated analysis provides a comprehensive picture of executive wealth leverage and compensation structure for individual companies or sectors. Analysts use this information to get behind the numbers in their discussions with managers. Portfolio managers use this information as a key input to their investment decisions.
Our seminars combine the benefits of up-to-date research, practical experience, and engaging, interactive exercises to highlight what works in management and governance. We impart innovative techniques for investment professionals to better distinguish effective from ineffective management and governance practices.
Selected articles by Marc Hodak:
- "How EVA® Can Help Turn Mid-sized Firms into Large Companies," Journal of Applied Corporate Finance, Vol 7 Num 1 Spring 1994
- "Value Creation in the Internal Corporate Market: Designing Effective Intra-company Charges," Journal of Applied Corporate Finance, Vol 8 Num 2 Summer 1995
- "The End of Cost Allocations As We Know Them," Journal of Applied Corporate Finance, Vol 10 Num 3 Fall 1997
- "The Viable EVA Center (or, How To Slice a Company So It Doesn't Bleed)," Journal of Applied Corporate Finance, Vol 13 Num 3 Fall 2000
- "Alignment Exposed: How CEOs Get Paid and What Shareholders Get For It," Journal of Applied Corporate Finance, Vol 16 Num 2-3 Summer 2004
- "Letting Go of Norm: How Executive Compensation Can Do Better Than 'Best Practices'," Journal of Applied Corporate Finance, Vol 17 Num 4 Fall 2005
- "Pay for Performance: Beating 'Best Practices'," Chief Executive, July/August 2006
- Corporate Governance (B65.2176)
- A History of Scandal (B65.2177)
- Corporate Governance Workshop (X58.9324)
- Finance Issues of Corporate Governance (X58.9322)
- Compensation Issues of Corporate Governance (X58.9323)
