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IIMB Management Review

Document Type

Discussions (Round Table)

Abstract

There is no way to measure your performance contemporaneously, period by period. The way people try to incentivize net present value is by using stock options or restricted shares or something like that. But we have taken net present value, which is what the accountants call a stock concept, and converted it into a flow concept, one that can be measured contemporaneously year-by-year. We have put the incentives and the tools in place, to reinforce that. So on acquisitions, for example, you will not be the one to drop out of the bidding contest. I will show you how we price acquisitions under EVA.

Publication Date

9-1-2001

First Page

70

Last Page

81

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