Orkla to implement the EVA®-based management system
EVA measures the creation of value during a given period of time at various levels of the organisation. At the same time the EVA model is designed to motivate the entire organisation, not just senior management, to make decisions that promote greater shareholder value. Consequently, the framework also includes an incentive and compensation system based on value creation. Orkla will therefore adapt and further develop its present management incentive systems to bring them in line with the EVA concept. It is Orkla’s intention that a wider group of managers will eventually be rewarded directly on the basis of their contribution to EVA improvements and thereby to greater shareholder value.
EVA® is a registered trademark of Stern Stewart & Co