Total shareholder return, TSR (also referred to in German as Aktiengesamtrendite and Aktienrentabilität)

In the case of equities, a key figure used to show the performance of a portfolio, usually over a period of one year. Gains and losses from share ownership are netted out, and dividend payments are treated as if they had been immediately reinvested in the corresponding security (a proportion that corresponds to the addition of the return on the share [dividends/value of the share] and the capital gains rate [capital gains during the period divided by the initial share value]. It is the return earned by a shareholder who bought the share at the beginning of a period, earned dividends, and then sold the share at the end of the period. To smoothen out market volatility, TSR sometimes is measured over long periods, like five or ten years). – In connection with public criticism of the compensation of senior executives of stock corporations, this indicator has often been compared with the increase in managerial salaries.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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