How to improve capital allocation decision-making

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4 minute read 7 Mar 2019
Authors

Evan Sussholz

EY US Transaction Advisory Services

Global client services partner and experienced transaction advisor who helps clients enhance shareholder value by making better decisions around capital strategy. Dedicated husband and father.

Mike Lawley

EY Americas Valuation, Modeling and Economics

Seasoned corporate finance executive specializing in capital structure, valuation, capital allocation, and financial risk management decisions.

4 minute read 7 Mar 2019

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Watch the video recap of our 2019 webcast on capital allocation and perspectives on increasing shareholder return.

Adopting a capital allocation approach that lets CEOs, CFOs and other top executives focus on the long term can help future-proof a business and increase shareholder returns. Surprisingly, in an EY survey of more than 500 global CFOs, 72% admit their company’s capital allocation process needs improvement.

In this video clip, Salli Schwartz of Moody’s, Greg Psihas of Lockheed Martin, and Loren Garruto and Mike Lawley of EY list their top take-aways and insights from the webcast discussion topics:

  • Making capital allocation decisions amid disruption
  • Overcoming barriers that impede agility
  • Making better investment decisions using the right data and metrics
  • Gaining investor trust
  • Creating a company culture that supports healthy debate to challenge assumptions
  • Clear communication to stakeholders about the capital allocation strategy

Watch the full video replay of Making the right capital allocation decisions and read our report, Is your capital allocation strategy driving or diminishing shareholder returns?, which explores three key questions every CFO and CEO needs to answer about investment decision-making:

  1. Can we react quickly enough to opportunities and threats?
  2. Are we making objective, unbiased decisions?
  3. Are we returning cash to shareholders at the right time, and in the right way?

Summary

Our 2019 capital allocation webcast focuses on how companies should approach their capital strategy and define what drives profitable growth in order to increase shareholder returns.

About this article

Authors

Evan Sussholz

EY US Transaction Advisory Services

Global client services partner and experienced transaction advisor who helps clients enhance shareholder value by making better decisions around capital strategy. Dedicated husband and father.

Mike Lawley

EY Americas Valuation, Modeling and Economics

Seasoned corporate finance executive specializing in capital structure, valuation, capital allocation, and financial risk management decisions.