Half Empty, Half Full: A Closer Look at TSR Awards

Episode Notes

• How much more usage of TSR awards can we expect (1:50)
• Custom peer groups (4:06)
• Paying out awards for negative TSR performance (8:44)
• Using TSR as a payout modifier for other metrics (11:35)
• The benefits our measuring outperformance (13:38)
• Barbara uses a football metaphor (19:37)
• Other market-based alternatives to TSR awards (20:34)
• Barbara and Terry plan a follow-up podcast on relative Sharpe-Ratio awards (24:20)

Resources Mentioned in This Episode

• A Better Way to Calculate Volatility
• Constructing the Pentagon of Incentives
• How to Size Relative TSR Grants with a Stub Period