Blue Line Management
V O LU M E 2 6 | N U M B E R 1 | WIN TER 2 0 1 4
Journal of
APPLIED CORPORATE FINANCE
In This Issue: Value-based Management, CEO Pay, and Private Equity
Managing for Value 2.0
8
Kevin Kaiser and S. David Young, INSEAD
The Growing Executive Compensation Advantage of
Private Versus Public Companies
20
Three Versions of Perfect Pay for Performance
(Or The Rebirth of Partnership Concepts in Executive Pay)
29
Stephen F. O’Byrne, Shareholder Value Advisors Inc.
A Look Back at the Beginnings of EVA and Value-Based Management:
An Interview with Joel M. Stern
39
Interviewed by Joseph T. Willett
What Determines TSR
47
Bennett Stewart, EVA Dimensions LLC
Integrated Reporting, Quality of Management, and Financial Performance
56
Cécile Churet, RobecoSAM, and Robert G. Eccles,
Marc Hodak, Hodak Value Advisors and
New York University’s Stern School of Business
Harvard Business School
The Evolution of Private Equity Fund Terms Beyond 2 and 20
65
Ingo Stoff, Technische Universität München, and Reiner
Braun, Friedrich-Alexander University, Erlangen-Nuremberg
The Impact of Sovereign Wealth Funds on Corporate Value and Performance
76
Nuno Fernandes, IMD Business School
How Much Do Private Equity Funds Benefit From Debt-related Tax Shields?
85
Alexander Knauer, Alexander Lahmann,
Magnus Pflücke, and Bernhard Schwetzler,
HHL Leipzig Graduate School of Management
Global Drivers of and Local Resistance to French Shareholder Activism
94
Carine Girard and Stephen Gates,
Audencia Nantes School of Management
Managing for Value 2.0* by Kevin Kaiser and S. David Young, INSEAD
ears ago, we had a conversation about the difficulty of teaching MBAs and business executives what it means to manage “for value.” In our view, there were four essential questions to be addressed:
(1) What is value? (2) Why is it important? (3) If it’s so important, why aren’t managers already doing it? And (4) how can we help managers to do it? We noticed that when a class of 30
Journal of
APPLIED CORPORATE FINANCE
In This Issue: Value-based Management, CEO Pay, and Private Equity
Managing for Value 2.0
8
Kevin Kaiser and S. David Young, INSEAD
The Growing Executive Compensation Advantage of
Private Versus Public Companies
20
Three Versions of Perfect Pay for Performance
(Or The Rebirth of Partnership Concepts in Executive Pay)
29
Stephen F. O’Byrne, Shareholder Value Advisors Inc.
A Look Back at the Beginnings of EVA and Value-Based Management:
An Interview with Joel M. Stern
39
Interviewed by Joseph T. Willett
What Determines TSR
47
Bennett Stewart, EVA Dimensions LLC
Integrated Reporting, Quality of Management, and Financial Performance
56
Cécile Churet, RobecoSAM, and Robert G. Eccles,
Marc Hodak, Hodak Value Advisors and
New York University’s Stern School of Business
Harvard Business School
The Evolution of Private Equity Fund Terms Beyond 2 and 20
65
Ingo Stoff, Technische Universität München, and Reiner
Braun, Friedrich-Alexander University, Erlangen-Nuremberg
The Impact of Sovereign Wealth Funds on Corporate Value and Performance
76
Nuno Fernandes, IMD Business School
How Much Do Private Equity Funds Benefit From Debt-related Tax Shields?
85
Alexander Knauer, Alexander Lahmann,
Magnus Pflücke, and Bernhard Schwetzler,
HHL Leipzig Graduate School of Management
Global Drivers of and Local Resistance to French Shareholder Activism
94
Carine Girard and Stephen Gates,
Audencia Nantes School of Management
Managing for Value 2.0* by Kevin Kaiser and S. David Young, INSEAD
ears ago, we had a conversation about the difficulty of teaching MBAs and business executives what it means to manage “for value.” In our view, there were four essential questions to be addressed:
(1) What is value? (2) Why is it important? (3) If it’s so important, why aren’t managers already doing it? And (4) how can we help managers to do it? We noticed that when a class of 30