J. C. de Swaan and Neil W. C. Harper

Since standard stock options don’t differentiate between value created by external factors and individual performance, investors may be shortchanged and CEOs may be rewarded regardless of merit and top-performing CEOs may be penalized if their tenure coincides with a bear market. Indeed, McKinsey research shows that from 1991 to 2000, market and industry factors drove about 70 percent of the returns of individual companies, company-specific … [ Read more ]

Getting What You Pay for with Stock Options

Companies now have an opportunity to rethink their use of stock options so that they serve shareholders as well as executives.

Are You Too Focused?

As successful companies mature, they must diversify to survive—and they can dramatically improve their shareholder returns as they do. The only questions are when and how.

Private Equity’s New Challenge

A changed competitive landscape calls for a different business model.