A New TSR for Boards: An argument for focusing on talent, strategy and risk.

By April Hall

A new book by three governance experts argues that boards should focus on a new kind of TSR. Instead of “total shareholder return,” the authors propose “talent, strategy and risk” as a measure of performance that can help the corporation meet institutional investor pressure for a longer-term outlook balanced with short-term results.

The book, Talent, Strategy, Risk: How Investors and Boards are Redefining TSR, was released in July 2021 by Harvard Business Review Press. Its authors are Ram Charan, Dennis Carey and Bill McNabb.

Charan is an advisor to CEOs and boards who has written more than 30 books, including Boards That Deliver and Boards That Lead. Carey, vice chair of Korn Ferry, has published six books, including Go Long. McNabb is the former chairman and CEO of institutional investor Vanguard and has substantial experience in balancing the short and long term.

Other related articles

  • The Ups and Downs of C-Suite Compensation

    Published March 16, 2023
    By Bill Hayes

    A new report finds CEO and CFO base salaries increasing but bonuses on the decline.

  • What Directors Are Thinking

    Published March 14, 2023
    By Charles Zimmerman, Ph.D.

    What Directors are Thinking

    Charles Zimmerman, DMin

    Independent Director: 
    Univest, Clemens Family Corporation

  • Don’t Drop the Baton: Talk More About CEO Succession Planning

    Published March 09, 2023
    By Naveen Bhateja

    With more than half of companies failing to plan for CEO succession, the topic needs to become more prevalent at meetings.

    In a relay race, dropping the baton is catastrophic. All the advantages and momentum gained up to that point in the race are lost. Even the most talented teams have a slim chance of recovering from a dropped baton.

  • When the Going Gets Tough…

    Published March 09, 2023
    By Bill Hayes

    To contribute effectively during economic uncertainty, directors need candor, care, curiosity and humility.

© 2022 MLR Media.