In 2016, the new CEO of Vyaderm Pharmaceuticals launched an Economic Value Added (EVA) program to align the company with long-term shareholder value. The EVA program consists of three elements: EVA centers (business units), EVA drivers (operating practices that improve EVA results), and an EVA-based incentive program for eligible managers. Over the next two years, …
The CEO of a local gasoline / distillate sales and distribution company must convey a new strategy to the division’s 300 employees. An initial strategic planning exercise identified a list of high-priority opportunities that combined the national strategy of the parent area with a tailored local strategy. However, for the new strategy to take effect, …
Describes the challenges a Japanese financial services company faces when trying to maintain its ability to attract and retain talented people. The CEO’s ideas on corporate governance and evidence from the competitive work environment suggest the need for more performance-based compensation. However, employees at all levels of the company know that any new compensation system …
In 2011, Cypress Semiconductor was doing well. His 2010 revenue had increased 32 percent to $ 884 million, and along with careful efforts to cut costs, his pre-tax earnings increased nearly 23 percent. During the previous two years, Cypress had reduced its debt and built a large liquidity position. But the semiconductor business was brutal …
Janalakshmi Financial Services (JFS), an Indian microfinance institution, had grown rapidly by providing financial products to its main customer base, the urban poor. However, the company faced several challenges. JFS productivity has declined and the company has had a high and above-market turnover rate in its sales force. H. loan officers. In addition, the division …
20 OCTOBER 15, ZURICH (SWITZERLAND). Michel Galeazzi and Felix Ackermann, the two co-founders of private equity firm Evoco AG, considered their next move for Kyotec, one of their portfolio companies that has just undergone a drastic restructuring. Evoco herself found herself at an interesting crossroads: was it time to plan a stake out? A strategic …
SAS Institute is a large, growing software company based in Research Triangle in North Carolina. Founded more than 25 years ago, it has taken a unique approach to developing and retaining talent with its industry in mind, including using stock options or phantom stocks and paying commissions to its sales representatives. The CEO and Vice …
This case describes the compensation system for portfolio managers at Harvard’s portfolio management company, including its bank bonus formula and functions. Harvard Management Co. President Jack Meyer explains the philosophy behind the performance bonus at his company.
The founders of the Clover Network did not see the arrival of Curveball in late 2012. The two-year startup only had nine employees. He had abandoned his first business idea, replaced his second, and was hard at work on a new product: a tablet-based cash register with built-in credit card processing. Large credit card processing …
Complete case (A). A rewritten version of a previous amendment.