TSR Calculation: Accumulated Dividends
Infinite Equity laid out the preferred method for calculating Total Shareholder Return (TSR) here. However, the calculation of TSR ultimately must follow the definition outlined in the legal grant agreement. Some companies do not assume that dividends are reinvested in the underlying entity when they are issued; instead, the dividends are essentially treated as a…
Don’t Let International Peers be Foreign to You
Performance shares earned based on Relative Total Shareholder Return (RTSR) are the most prevalent form of performance equity in the global marketplace. Selecting appropriate peer companies has always been a critical aspect of RTSR plan design, and as more companies compete globally, a greater number of companies are selecting international peers. The inclusion of international…
TSR Calculation – Best Practice
Section 1 – TSR Calculation Considerations One of the benefits of using Relative Total Shareholder Return (“RTSR”) as a performance metric is the transparency of the calculation. It is based on empirical stock price data which is published daily from many different objective financial data sources. Nonetheless a wide variance of methodologies for calculating Total…