【正文】 Value metric correlation to TRS Our Time Line 1990 1995 In 1990, Hewitt brings together leading firms in Shareholder Value Theory / Executive Compensation for the first conference devoted to the link between Shareholder Value and Compensation Research collaboration Professor Abbie Smith, University of Chicago. Article publications VBM, Compensation and Performance Management Value Based Compensation Client Projectsexamples ?Valmont EVA Program ?Clear Communications CVA ?Halliburton Industries CVA ?BancOne EVA ?Maytag VBM incentive plan ?Dominion Textile ?Canadian Tire ?Molsons VBM Conference Linking VBM to Compensation: Our Experience Experience in Developing Global Human Resource Applications Expertise in Total Compensation Integrating Shareholder Value Creation Approaches Knowledge of Employee Engagement and Employer of Choice Programs Utilization of Tools and Technology In Delivering the New Programs ? Recognized leader in developing and implementing global Human Resource solutions. ? With over 80 offices in 37 countries around the world we are very familiar with the cultural and legal differences in various countries. ? We understand how to take global programs and make them effective across borders. ?Vast experience over the years to in the areas of total pensation, performance management systems, talent management development solutions, value scorecards and munication of global strategies. ?Preferred partner of The ECONOMIST Intelligence Unit in conducting the 1998 study Building and retaining global talent towards 2023. Our Standing Experience in Developing Global Human Resource Applications Expertise in Total Compensation Integrating Shareholder Value Creation Approaches Knowledge of Employee Engagement and Employer of Choice Programs Utilization of Tools and Technology In Delivering the New Programs ? We understand how various elements of pensation fit together to support business objectives ?Expertise in all areas of pensation, including direct pay, short long term incentives, sales pensation, IT pensation, ownership programs (. stock option and stock purchase plans), and executive pensation. ? The largest databases on executive and manager pensation (Total Compensation Measurement TCM) and variable pensation (Variable Compensation Measurement VCM) programs in existence. Our Standing Experience in Developing Global Human Resource Applications Expertise in Total Compensation Integrating Shareholder Value Creation Approaches Knowledge of Employee Engagement and Employer of Choice Programs Utilization of Tools and Technology In Delivering the New Programs ? Deep expertise in helping panies think through and design pensation programs to maximize shareholder value. ? Understanding of meaningful measures, and their reinforcement through performance management, munication and pensation from our experience with global anizations like Halliburton, Whirlpool, Cargill, GATX, and Rh244。al New York Newport Beach Orlando Philadelphia Phoenix/Scottsdale Pittsburgh Regina Rowayton The Americas Atlanta Boston Bridgewater Buenos Aires Calgary Caracas Charlotte Chicago Cincinnati Cleveland Dallas Denver Detroit Lincolnshire (HQ) More than 12,000 associates in 81 offices in 36 countries around the world Our Standing About Hewitt A global management consulting firm specializing in human resource solutions. Our strength is helping anizations identify and implement people solutions using both the strategic and tactical approaches. ? Privately held since 1940。Value Based Management Hewitt Associates August 2023 Creating Shareholder Value is Gaining Importance Due to a Variety of Factors Regional/Capital Markets Perspective Greater Focus on Shareholder Value Integration of Organizational Structures Deregulation Privatization Integration of Capital Markets WTO Capital Market Investment Objectives Mergers and Acquisitions Globalization Corporate Specific/Top Management Perspective Traditional accounting measures are not reliably linked to shareholder value Growing recognition of the need to align management actions and rewards to longterm value creation Increasing publicity of shareholder value creation rankings (., FT. Fortune) Possibility of takeover by investors seeking “under” managed assets “ Buy in” by Corporate leaders What is Value Based Management ? ? A consistent framework that aligns management action and strategic objectives with shareholder value creation ? The primary goal of value based management is to build a corporate mindset in which management decision making and execution are focused on the creation of shareholder value VBM Enables ? A consistent approach to management planning, resource allocation, performance assessment, and munication ? Management to focus and prioritize on “value” ? Alignment of management action with strategic objectives and shareholder value VBM is Not ? Solely a question of choosing a performance metric ? Limited to implementation within the corporate planning and finance division ? Easy to implement HR Alignment Facilitates the Success of VBM Implementation % % % % % % 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 5year Average % TSR CFROI Sales Growth Companies aligned to VBM objectives Companies not aligned ? VBM measures used for planning and pensation ? VBM goal setting ? Performance system ? Training ? Business unit and corporate incentives Empirical Results Show a Link Between Organizational Implementation and Value Creation Companies with business unit specific longterm incen