Stern measures: In conversation with Joel Stern

Abstract

Joel Stern, managing partner of Stern Stewart and Co spoke to S Venkatesh about Economic Value Added, EVA, the financial evaluation tool that his company devised and grew. Elaborating on how it differs from the accountants’ measure of value and is an accurate measure of shareholder value, Stern claimed that EVA was emerging as a strong consulting practice in India, thanks to the sharpness of the quantitative side of the Indian brain. Defending EVA against Prof Zimmerman’s criticism, Stern strongly positioned EVA as a tool for evaluation, incentivisation and strategic decision making.