We ask Terry Adamson of Infinite Equity what he thinks about paying out TSR awards when performance is negative, using TSR as a modifier, custom peer groups and more.

Episode Notes:

• How much more usage of TSR awards can we expect (1:50)
• Custom peer groups (4:06)
• Paying out awards for negative TSR performance (8:44)
• Using TSR as a payout modifier for other metrics (11:35)
• The benefits our measuring outperformance (13:38)
• Barbara uses a football metaphor (19:37)
• Other market-based alternatives to TSR awards (20:34)
• Barbara and Terry plan a follow-up podcast on relative Sharpe-Ratio awards (24:20)

Resources Mentioned in this Episode

• A Better Way to Calculate Volatility
• Constructing the Pentagon of Incentives
• How to Size Relative TSR Grants with a Stub Period

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