Our primary focus is assisting companies enhance the productivity of their executives. This may entail selecting and communicating valid performance measures. For public companies we undertake financial and market analyses to determine the extent that various measures are related to market value. We track these to individual executive as well as executive team accountabilities. We consider the extent that the data within these measures is readily available and transparent. We test, using historical data, the probabilities that levels of performance based on the measures can be attained. This is checked, for validity, against equity analysts’ forecasts.
For non-financial measures we use a unique data capture and analysis tool, known as ESG Plus™. This was developed researching the disclosures from multiple years of the largest 500 companies on stock exchanges in Australia, the US, Singapore, continental Europe and the UK. The tool recognises that environmental, social and governance does not quite capture the universe of non-financial performance measures used to enhance global company value and contribution. We use this framework to assist clients prioritise, compare, and communicate non-financial performance to their most important stakeholders.
In addition to measurement, the performance process must review, track, communicate and assess achievement on measures with the executive through an efficient and effective management system.
Contact us for a review of executive or director performance management effectiveness.