The Advisors' Blog

– Broc Romanek

Here’s a note from Anders Melin:

As if the change to 162(m) didn’t give comp folks enough extra work, ISS said Monday it had bought EVA Dimensions, which presumably will impact on its pay-for-performance analyses. The timing and scope of any changes are unclear, but the best guess right now is that changes, if any, will be made starting with 2019 policies. This of course raises a bunch of interesting questions: If included, how much weight will EVA take away from TSR? Is it time to follow Ball Corp.’s model and add EVA, or economic profit, to incentive plans? And will there be pushback among issuers?