EVA for Corporate Incentives

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Performance Measurement > Best Practices > EVA for Corporate Incentives

EVA for Corporate Incentives
Adrija Ghosh, Student (MBA), United States
Is EVA a good metric to determine incentive compensation awards at the corporate level? Why? (...) Read more? Sign up for free

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  EVA as a Metric for Compensation/ Awards
Mehul Doshi , CxO / Board, India
  Yes, EVA is a crucial one of the metric for compensation and awards.
EVA is linked to the business goal or target by business.
For example: in next two years the company in a particular segment should own 35 per cent market share with minimal profitability of 700 basis point.
EVA calculation over a two year period is considered where the manager or business head is free to act like a entrepreneur and shared cost are charged on his team. Over the two year, based on the project and innovation curve, the compensation is calculated by the organization. If the short term goals as per shared plan are achieved interim compensation is also reworked. However EVA is just one of the parameters and not the only one. It is added as a KPI in certain organizations.

   
Special Interest Group Leader
Mehul Doshi
CxO / Board

Performance Measurement
Summary
Forum
What is the Impact of Debt on EVA?
Revised Economic Value Added (REVA)
🔥What is EVA Momentum?
Best Practices
🥇EVA growth is what matters
🥈How to Calculate EVA
EVA for Corporate Incentives
Calculating EVA for a Proprietary Company
EVA & Amortization of R&D
Alternative Methods for Economic Value Added (EVA)
EVA Calculation across a Whole Value Chain
EVA applied to consulting services


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