What is TSR / Total Shareholder Return?
Total shareholder return (TSR) is a measure of financial performance, indicating the total amount an investor reaps from an investment—specifically, equities or shares of stock. To arrive at its total, usually expressed as a percentage, TSR factors in capital gains and dividends from a stock; it might also include special distributions, stock splits, and warrants. Whichever way it is calculated, TSR means the same thing: the sum total of what a stock has returned to those who invested in it.
How is Total Shareholder Return calculated in the Boardroom Alpha platform?
All TSR calculations are based on split and dividend adjusted closing prices smoothed by a 21-day moving average (MAVE). All TSRs for time spans longer than a year are annualized.
Tenure TSRs (the TSR over a person’s tenure as an executive at a specific company) are computed from monthly returns compounded over a person’s tenure at a company. Start prices are based on the MAVE of the last price of the month their tenure begins. End prices are based on the MAVE of the last day of the month their tenure ends.
Career TSRs (the TSR over all a person’s tenures) are computed as the average monthly return across a person’s active tenures and compounded across their career.
Company TSRs are computed from monthly returns compounded over the specified time interval (i.e., trailing 1-year, trailing 3-year, and trailing 5-year). Start prices are based on the MAVE of the last price of the month 1, 3, or 5 years ago (if available). End prices are based on the MAVE of the most recently available price.