Return on equity, theamount a firmearns on itscommon stock outstanding and animportantmeasureoffinancialperformance, hasdecreasedsignificantly in the yearssince the creditcrisis.
Senior executives of the telecom concern won't receive additional restricted shares tied to its relative stockperformance if shareholder return is negative over a three-year period.
He then examined the relationship between growth and shareholder returns using a measurement known as Jensen's alpha, which represents the difference between a company's stockperformance and the return of a diversified portfolio of risky stocks.