Shareholder Value Transfer - SVT

Dictionary Says

Definition of 'Shareholder Value Transfer - SVT'

A metric intended to guide shareholders in how much equity compensation should be awarded for employees and executives of publicly traded companies. Shareholder Value Transfer is calculated as the total value of equity grants divided by the market capitalization of the company. This yields a percentage to which existing shareholders would be diluted under a given equity compensation plan.
Investopedia Says

Investopedia explains 'Shareholder Value Transfer - SVT'

The Shareholder Value Transfer metric was created by Institutional Shareholder Services (ISS), a research firm that advises shareholders on how to vote on shareholder proposals. ISS calculates shareholder value transfer for the top companies within each industry and decides on a maximum "cap" amount that any company should have to pay in shareholder value transfer, in order to perform well. ISS then typically advises investors to vote against any equity compensation proposal that would exceed the shareholder value transfer cap.

Articles Of Interest

  1. A New Approach To Equity Compensation

    The new financial accounting standard known as FAS 123R could take a bite out of your portfolio. Find out why here.
  2. Mergers Put Money In Shareholders' Pockets

    Learn the five ways mergers and acquisitions can increase a company's value.
  3. Basic Investment Objectives

    You might know about different asset types, but do you know how each type contributes to a particular goal?
  4. Exploring The Current Account In The Balance Of Payments

    Learn how a country's current account balance reflects the country's economic health.
  5. What Determines Your Cost Basis?

    In any transaction between a buyer and seller, the initial price paid in an exchange for a product or service will qualify as the cost basis. When it comes to securities and related financial ...
  6. The Diner's Guide To Tipping

    A look at the standards for tipping service staff in some popular vacation destinations, and the rationale for each custom.
  7. Understanding And Playing The Dow Jones Industrial Average

    Learn strategies for investing in this price-weighted index and how to interpret its movements.
  8. Writing A Covered Call

    Writing an option is the process of selling to another investor the right, but not the obligation, to buy or sell a stock at a given price in the near future. It can also be referred to as shorting ...
  9. Arbitrage Squeezes Profit From Market Inefficiency

    This influential strategy capitalizes on the relationship between price and liquidity.
  10. Broker Commissions Are Here To Stay

    With two developed nations adopting a firm anti-commission stance, questions have arisen over whether or not the United States should follow suit. Find out why such a development is unlikely.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.
  2. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.
  3. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.
  4. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.
  5. Chartalism

    A non-mainstream theory of money that emphasizes the impact of government policies and activities on the value of money.
  6. Dead Presidents

    Slang referring to U.S. paper currency. Dead presidents can refer to any unit of currency, but most often refers to George Washington, whose picture is on the $1 bill.
Trading Center