By April of 2021, inflation had risen to above 4%; the economy was flush with stimulus money and cheap credit, driving consumer and business spending, while at the same time companies faced increased costs due to supply chain disruptions and a tight labor market.

January 12, 2024

Market Turbulence: Volatile Years Underscore the Importance of Relative TSR

ISS-Corporate Insights Market Turbulence

Below is an excerpt from ISS-Corporate’s recently released report “Market Turbulence: Volatile Years Underscore the Importance of Relative TSR”. The full report is available on the ISS-Corporate online library.

Over the last few years, a multitude of historic events have contributed to economic turbulence that has unevenly impacted stock price performance across different market segments. Understanding industry and market trends and the key drivers of valuations over the period is crucial in evaluating a company’s performance against its most relevant industry peers and making informed decisions on executive compensation.

From the start of 2020 through September 2023, median Total Shareholder Return (“TSR”) of the top performing index (S&P 400) was 25%, while the best performing industry (Energy) posted TSR of 102%. Over the same period, the median of the worst performers, the Russell MicroCap index and the Pharmaceuticals, Biotechnology & Life Sciences industry, declined by 58% and 81%, respectively.

Read the full paper >

By: Jordan Duckham, Senior Associate, Compensation Products, ISS-Corporate
Sahil Dawar, Senior Associate, Compensation Products, ISS-Corporate 

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