In his Executive Compensation column, Joseph E. Bachelder III discusses recent developments in Economic Value Added (a measure of a business enterprise's economic performance), how the EVA formula ...

Performance measures must align with portfolio use and features. Avoid Sharpe and similar ratios due to flaws; consider alternatives like trimmed alpha, median returns, and value at risk. CAGR is ...

Please note: This item is from our archives and was published in 2002. It is provided for historical reference. The content may be out of date and links may no longer function. SINCE MOST KEY BUSINESS ...

For a financial performance measure to be good, it should generally rise when good things happen and decline when bad things happen. And it should motivate high-quality decision-making. This may seem ...