Capital Allocation: When the Right Thing Is Hard to Do

Millman, Gregory J.
September 2000
Financial Executive;Sep/Oct2000, Vol. 16 Issue 5, p28
Academic Journal
The article discusses capital allocation and economic value added (EVA) programs. EVA is the metric, management philosophy, and incentive system that was developed by Bennet Stewart and Joel Stern, partners at the Stern Stewart consulting firm. EVA analysis and accounting methods are discussed. Senior Executive Vice President (VP) and Chief Financial Officer (CFO) at Ryder System C. J. Nelson, President of Herman Miller North America Brian Walker, and Senior VP and CFO at Briggs & Stratton Jim Brenn comment on profitability and EVA programs at their companies. Herman Miller CFO Elizabeth Nickel comments on the short-term, financial indicator of earnings per share.


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