AIHR

OCTOBER 12, 2022

Variable compensation, also known as variable pay , is supplementary compensation typically tied to performance goals measured by specific metrics. Lowering fixed costs: Variable pay programs allow you to lower base salaries because you’re offering employees the prospect of earning additional money.

Compensation 130

Compensation Metrics Benefits Benchmarking 130

Chief Executive

NOVEMBER 15, 2022

Since shareholder value is driven by investor expectations of future cash flow and EP growth (See S&P 500 Warranted Value of Discounted Economic Profits vs. Actual Traded Value chart, below), EP has been used as the profitability metric for AlixPartners’ Automotive Value Creation study. OEMs will also need to navigate emerging headwinds.

Cash Flow 52

Cash Flow Manager Fixed Costs Metrics 52

Harvard Business Review

APRIL 5, 2017

While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex. But the other indicators probably pick up legitimate differences in how companies in the sample operate, as opposed to whether they are myopic.

Metrics 11

Metrics Cash Flow Revenue Compensation 11

Harvard Business Review

MAY 19, 2015

Wall Street began charging a “conglomerate discount,” saying that diverse operations were hard to analyze with confidence. True synergies across the diverse operations were often hard to see. Headquarters provides accountability and perhaps better metrics than the divisional managers might otherwise have.

Cash Flow 15

Cash Flow Engineering Fixed Costs Sales 15

Harvard Business Review

FEBRUARY 11, 2016

Too often, purchasing departments manage the selection while operating managers—not involved in selection by fiat—are expected to make the relationship work. What metrics are used, and are they reasonable? How well does the organization convert a plan or an initiative into well-defined, S.M.A.R.T. objectives and timelines?

Administration 14

Administration Fixed Costs Benefits Manager 14

Harvard Business Review

AUGUST 16, 2011

This is the essence of Groupon's declaration last week that it will remove the controversial accounting metric called Adjusted Consolidated Segment Operating Income (ACSOI) from its financial statements. ACSOI essentially measures Groupon's profits before subtracting its subscriber-acquisition costs and stock option-based compensation.

Fixed Costs 22

Fixed Costs Metrics Scaling Marketing 22

Chief Executive

JULY 25, 2022

But they had this march, which was doubling components at affordable cost every 18 to 24 months, no matter what, like clockwork. It speaks to figuring out what that one key metric is that moves your business, and committing to it over and over. And if we do that, we can’t help but grow revenues per fixed cost.

Balance Sheet 98

Balance Sheet Assets Engineering Operations 98