In addition, a decline in the equity premium temporarily increases the return to shareholders.
Over 30 years the annual return to shareholders has averaged more than 20%.
Over the past six years he delivered a 41% annual return to shareholders.
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Twenty-first-century corporations are far more than the products they sell, the people they employ or the profits they return to shareholders.
Previously, the attraction at Dresdner Kleinwort Wasserstein was a skewed bonus system that rewarded deal revenue rather than the actual return to shareholders.
This is not a profitable venture at the moment, and the average annual return to shareholders over the past six years has been -7%.
Since taking his New Century Financial, a real estate investment trust, public in 1997, he has delivered a 25% compound annual return to shareholders.
These chief executives have held the top job for at least 20 years and delivered at least a 20% annual return to shareholders during their tenure.
Should this occur, future earnings will continuously need to be set aside in order to satisfy that debt, rather than to facilitate company expansion or provide return to shareholders.
We analyzed 26 industries (excluding trading companies) of the Global 2000 and scored each company on long-term and short-term sales growth, profit growth, return on capital and total return to shareholders.
He also reiterated the intention to return to shareholders, in the form of a dividend or a stock buyback, 100% of the proceeds from a sale and licensing of patents to Microsoft.
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Only when one company buys another, in cash and for more than book value, does capital actually leave the industry (and return to shareholders), and even then only by the amount of the goodwill.
To find these companies we analyzed 26 industries (excluding trading companies) of the Global 2000 and scored each company on long-term and short-term sales growth, profit growth, return on capital and total return to shareholders.
But he added that the board decided to cut the dividend to 0.17p per share, to reach an "appropriate balance between providing a return to shareholders and preserving the financial flexibility necessary" of the firm.
The big question though is how the company gets through to 2014 without anything radically new to show for all of the wealth it has generated but keeps stashed away (and will now return to shareholders).
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"My determination was quite straightforward, return to shareholders had been poor and Mr Diamond needed to set an example to all stakeholders that remuneration policies had to change to reflect the low return environment, " she told the committee.
Other research has shown that venture-backed companies run by women have annual revenues 12 percent higher than those by men and that organizations that are the most inclusive of women in top management positions achieve a 35% higher return on equity and 34% higher total return to shareholders.
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The bank plans to return money to shareholders, buying back up to 10% of its equity.
Earlier this year, investors including hedge-fund manager David Einhorn lobbied the company to return more to shareholders.
Next week, the Fed will make public which banks will be able to return money to shareholders via dividends and buybacks.
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He has been actively pushing Apple to return capital to shareholders, going so far as to sue the company over corporate governance matters in February.
Additionally, gold miners, unlike the metal or gold ETFs, are able to return cash to shareholders to make shares more valuable and attractive to investors.
Several companies have caught on the special dividend craze, deciding to return money to shareholders ahead of what could end up being a terrible fiscal cliff outcome.
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Several companies have incurred in buybacks and special dividends over the past few weeks in order to return money to shareholders ahead of a possible tax hike connected to the fiscal cliff.
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Mr Cook said at the Goldman Sachs technology investor conference in San Francisco on Tuesday that he and the Apple board were "seriously" considering new ways to return cash to shareholders, including the Greenlight proposal, which he then called "creative".
Major U.S. banks were required to deliver capital plans to the Fed by Jan. 9, and the central bank is now in the process of evaluating those reports, which include proposals on how and when firms intend to return capital to shareholders.
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Just about every day we see large corporations with strong balance sheets and excess cash flow decide the best use they can make of the money is to return it to shareholders by repurchasing shares that increase the earnings per share behind all the remaining shares.
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Finally, there will be scenarios where the best choice is to not return cash to shareholders.
It would increase the cost of capital to companies and could potentially change the way we return capital to shareholders.
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The judge backed a lawsuit by activist shareholder David Einhorn, who wants Apple to return more cash to shareholders.
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