Operational alpha
The operational alpha is a key figure as part of the concept of indexed operational performance measurement . The operational alpha is the difference between the current value of a key figure and the median in the concept of the operational index of the relevant peer universe of this key figure. The operational alpha is thus the operational counterpart to the alpha factor : It is an operational indicator based on key figures for the relative return of the investor on the market value of the company.
example
The figure below shows the operational alpha. The operational alpha of the EBIT margin (EBIT / sales) figure is entered as a blue arrow based on the median of the EBIT margin of the comparable companies (entered as a blue line in the graph and also referred to as the operational index ). In the example, the operating alpha of the company's EBIT margin is 0.8%, 0.9%, 2.0%, 0.3%, −1.2%, 1.3%. In addition to the median of the comparable companies (blue line), the graph also shows the first and third quartile limits (limits of the blue shadows). The blue areas show the EBIT margins of 50% of all comparable companies.
Integration in value theory (value-oriented leadership)
Because the definition of the peer universe is based on the perspective of an investor (see indexed operational performance measurement ), the operational alpha is an indicator for the investor alpha (for example the Jensen alpha ), i.e. the difference between the company's and the equity return the average return of a benchmark index.
The best empirical valuation prediction for investor alpha is to be expected from the operational alpha of the economic value added (operational EVA alpha) or the operational alpha of the net profit (operational net profit alpha), because these key figures determine the company value in the long term in valuation theory . Good results can also be expected from the operational alpha of sales growth, the EBIT margin and the turnover of invested capital, since the corresponding market multiples (sales multiple, P / E ratio, price-to-book ratio) are of central importance for the empirical company valuation .
Bonus targets based on the operational alpha
For this reason, it is recommended to base bonus targets on the operational alpha in order to minimize cyclical influences in the performance assessment (see performance-based remuneration ). An example of indexed bonus targets is the bonus index, which is published annually by the Zurich financial research company Obermatt, the operational alpha for the German HDAX companies and the Swiss SMI and SPI companies.
swell
- ↑ Hermann J. Stern : "Benchmarking in the Supervisory Board for Corporate Control" In: Journal for Corporate Governance ZCG (December 2007) Article as PDF ( Memento of the original from August 28, 2008 in the Internet Archive ) Info: The archive link was inserted automatically and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Stern, Hermann, "Making Bonus Systems Fair and Crisis Proof", March 11, 2009. Article as PDF in SSRN and Stern, Hermann, "A bonus in the recession? - Yes, provided it is market-oriented!", In: CFO Aktuell, December 2008 Article as PDF ( Memento of the original from October 11, 2014 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ HDAX bonus index: Börse Online, May 7, 2009, page 11; SMI / SPI bonus index: Finanz & Wirtschaft, April 29, 2009, page 25; Online sources: Free download of the bonus indices from www.obermatt.com ( Memento of the original from May 18, 2009 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
