Total shareholder return, for example, rose by nearly 292% over the last five years.
"It's bad optics to pay out at the maximum level when total shareholder return is negative, " Mr. Becker says.
"The company could not do very well in total shareholder return, and the rewards for managers could still crystallise, " Ms Wilson warned.
During the past six years DiMicco has steered the Charlotte, North Carolina company to an annualized 32% total shareholder return, well outpacing rivals.
Their performance related rewards are determined in large part by total shareholder return, which is dominated by what has happened to the share price.
More U.S. companies are limiting the stock rewards for top leaders in down years by restricting certain compensation when total shareholder return is negative.
Long term plans rely on relative performance measures such as total shareholder return relative to the average return for other companies in the same industry.
Companies with brands that delivered distinctive benefits generated total shareholder return, relative to their industries, that was 9.5 points higher than brands that were weak in delivering distinctive benefits.
In a recent Compensation Committee meeting, one of the executives participating in the meeting asked whether or not I favor Total Shareholder Return (TSR) as a performance measure for performance share plans.
The Alignment Reports clearly show whether or not the CEO pay of each bank was: (1) reasonable compared to the relevant market, and (2) sensitive to company performance, as indicated by Total Shareholder Return (TSR) over time.
FORBES: Lessons Learned in the Aftermath of the Banking Crisis
Temasek's total annual shareholder return has dropped to only 6% for the past ten years.
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