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Performance governance ensures executive leadership execution tracks exactly against the board’s approved corporate budgets and long-term targets.
Control Mechanisms
- Budget Variance Interrogation: Comparing actual performance metrics directly against original budgets to demand accountability for negative deviations.
- Incentive Compensation Alignment: Linking executive bonuses and stock-option grants directly to value creation metrics like ROIC and Economic Value Added (EVA).
- Executive Succession Metrics: Evaluating the financial track records of internal leaders to secure a strong pipeline of future C-suite candidates.
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