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

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.

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