D. Koch on share price
From Chairman, President and CEO of Carlisle Companies Inc. - 1st Tuesday · · UMN Carlson School of Management
“The company's share price is the management scorecard. Every day in a public company, you get feedback on how you're executing your vision. It's really important to understand how to manage the company to best optimize the chances to achieve superior performance because that performance drives sustained shareholder value over time.”
On , D. Koch, Chairman, President & Chief Executive Officer at CARLISLE COS INC, spoke about share price during Chairman, President and CEO of Carlisle Companies Inc. - 1st Tuesday on UMN Carlson School of Management.
About D. Koch
In a September 2021 appearance, Koch discussed the importance of clarity in strategy and execution, particularly during crises. He stated that Carlisle's financial strength, characterized by a focus on margin leverage and avoiding excessive debt, served the company well during the COVID-19 pandemic. Koch noted that the company deployed over three billion dollars into capital expenditures, share purchases, and dividends, with an additional three to five billion dollars allocated to acquisitions, and set goals of reaching $8 billion in sales, 20% operating margins, and over $15 in earnings per share. He described the company's share price as a "management scorecard" and emphasized a "bias for action" in accelerating through economic challenges. Koch also addressed the company's approach to environmental, social, and governance (ESG) issues, stating that Carlisle formalized its existing practices in its first ESG report, which included initiatives such as a $15 minimum wage in North America. He noted that only about six percent of the company's supply chain was dependent on Chinese and foreign sources, and that COVID-19 had prompted a review of supply chain strategy, including the hiring of a Vice President of Supply Chain. Koch remarked that making tough decisions on talent and capital allocation can be "lonely and uncomfortable" but defines a leader.