Tag: EBITDA

Operating Cash Flow & Executive Compensation

Operating Cash Flow & Executive Compensation

Operating Cash Flow growth is a meaningful metric. We believe it should be factored into executive compensation models. Operating Cash Flow matters. Public companies factor annual Revenue growth and EBITDA (Earnings Before Interest Taxes Depreciation and Amortization), or "Adjusted" EBITDA growth into executive compensation plans. We recommend adding Operating Cash Flow ("OCF") growth to the … Continue reading Operating Cash Flow & Executive Compensation

3 Stages of Market Awareness

3 Stages of Market Awareness

Companies don't establish themselves in new markets overnight. All good things take time and effort. Market awareness typically evolves in three main stages as companies evolve from "Challengers" to "Established" players. Stage 1: Stage 1 companies carry high cost of customer acquisition, long sales cycles and low sales volume as indicated in figures 1 and … Continue reading 3 Stages of Market Awareness

The Software Treadmill: Keep Pace or Fall Behind

The Software Treadmill: Keep Pace or Fall Behind

The software industry is fluid and unforgiving - especially the CyberSecurity space. Companies either innovate or fall behind. There is no such thing as standing still. This week semiconductor firm Broadcom (tkr: AVGO) agreed to acquire Symantec's Enterprise business. Symantec (tkr: SYMC), is a CyberSecurity software vendor and is a laggard in an industry that's … Continue reading The Software Treadmill: Keep Pace or Fall Behind

Tesla’s $2.3 Billion CEO Compensation Package

Tesla’s $2.3 Billion CEO Compensation Package

Tesla CEO Elon Musk's $2.3 Billion compensation package is an example of poor corporate governance and a self-serving Board (ACCESS Our Commentary HERE). For examples of how to run a business well and fairly compensate CEOs for performance - look no further than CoStar (tkr: CSGP) and SS&C (tkr: SSNC). Our CSGP and SSNC data … Continue reading Tesla’s $2.3 Billion CEO Compensation Package