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Total Shareholder Return: Measuring Value Creation & Aligning Executive Incentives

Total Shareholder Return: Measuring Value Creation & Aligning Executive Incentives

Total Shareholder Return (TSR) is one of the most widely used metrics in corporate governance and executive compensation — capturing both stock price appreciation and dividends paid to measure the true return generated for shareholders over a defined period. From structuring relative TSR percentile rankings in long-term incentive plans to valuing market-based equity awards under ASC 718, designing an effective TSR program requires deep expertise in financial modeling, peer benchmarking, and governance best practices. In this article, The McLean Group explores how TSR works, why it anchors so many executive compensation programs, and how companies can build balanced, defensible incentive frameworks that align leadership rewards with long-term shareholder value creation.

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March Madness Meets M&A: Don’t Let Your Deal Be a Busted Bracket

March Madness Meets M&A: Don’t Let Your Deal Be a Busted Bracket

In M&A, one wrong move in due diligence can bust your deal just like a bad bracket pick busts your March Madness chances. The McLean Group’s QofE Bracket Challenge breaks down the Quality of Earnings process round by round, from scouting the financials on Selection Sunday to cutting down the nets with a championship caliber EBITDA deliverable. Along the way, we expose aggressive revenue recognition, unrecorded liabilities, unsupported add-backs, and the kind of “one-time” expenses that seem to happen every single year. In today’s market, where multiple expansion is off the table and lenders are more selective than ever, earnings quality isn’t just one dimension of diligence. It’s the entire game. A strong QofE protects your returns, strengthens your negotiating position, and sets you up to create value from day one after close.

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Employee Stock Purchase Plans (ESPP): Structure, Strategy & Implementation

Employee Stock Purchase Plans (ESPP): Structure, Strategy & Implementation

Employee Stock Purchase Plans (ESPPs) are one of the most powerful and accessible tools companies can offer for broad-based equity participation — allowing employees at every level to purchase company stock at a discount, often with the added advantage of a lookback provision that locks in a favorable price. In this article, The McLean Group breaks down how ESPPs are structured, how qualified Section 423 plans differ from non-qualified alternatives, the tax implications of qualifying versus disqualifying dispositions, and the strategic benefits ESPPs provide for employee engagement, retention, and competitive compensation. We also outline how our valuation and advisory team supports companies through every stage of ESPP implementation, from plan design and ASC 718 fair value analysis to financial reporting, dilution modeling, and building cohesive equity compensation frameworks that align workforce incentives with long-term shareholder value.

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