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Stern Stewart’s WAI™ analysis services utilize its proprietary framework to assist companies in measuring performance. Wealth Added is the excess wealth generated above expectations based on the perceived risk of the shares. It is important to recognize that Wealth Added reflects returns for all equity investors, no matter when they bought their shares.

WAI™ = ΔMarket Cap - Required Return + Dividends - Shares Issued

In this approach, Wealth Added is adjusted for dividends, shares issued, spinoffs, stock splits, and any other transactions to properly account for the economic return to equityholders. Alternatively, Wealth Added can be measured as the total of the daily WAI during the year, where:

Daily WAI™ = (Total Shareholder Return - Required Return) x Opening Market Cap

Both approaches produce mathematically identical results, with the second one incorporating equity transactions through daily measurement.