Portfolio Valuation Services

February 1, 2025

Relative Total Shareholder Return Compensation

Financial Reporting Flash: Issue 2, 2025

Executive Summary

Relative total shareholder return (TSR) has become a central metric in long-term incentive plans, particularly for aligning executive compensation with shareholder outcomes. As companies navigate market volatility and evolving governance standards, a clear understanding of relative TSR-based awards is essential for effective plan design and regulatory compliance.

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