EVA^® is much more than just a measure of profits.
Used to its fullest, EVA is an integrated framework for financial management and incentive compensation that transforms a company's culture and its performance. Most important, EVA really works.

EVA^® (Economic Value Added) measures the wealth your company creates (or destroys) each year. It is your company's after-tax profit from operations minus a charge for the cost of all capital employed to produce those profits--not just the cost of debt, but the cost of equity as well.

But EVA is much more than just a different way of measuring profits. Stern Stewart & Co. developed EVA as the cornerstone of a financial management and incentive compensation system that changes not only how executives view their company, but how they manage it. And independent evidence proves that EVA really does bring dramatic performance improvements.

Academic research shows that Stern Stewart's clients have outperformed other companies in their industries by an average of more than 60 percentage points in total returns to shareholders over their first four years on EVA.