The Bank of Russia has prepared recommendations for developing a strategy to increase the shareholder value of companies. The regulator suggests that issuers whose shares are traded on the stock exchange and companies planning an IPO prepare strategies to increase shareholder value in the medium and long term. This is stated in the message of the Central Bank.
The strategy should be concise and presented in clear language. The document should include information on the company's main activities, products and services, key financial reporting and operating performance indicators, information on market capitalization, declared and paid dividends over the past 3-5 years, as well as on outstanding and outstanding securities.
The regulator suggests using "total shareholder return" as a key target indicator of the strategy. This indicator combines the dividend yield and the return received by investors from the positive revaluation of shares.
It is recommended that companies define their development goals for a period of 3-5 to 10 years and plans to achieve them based on an assessment of current shareholder value.