"As a first step, carefully model the multi-year effect on earnings, especially when earnings in one year are depressed by tax reform and then artificially lifted in the year after. When contemplating adjustments to as-reported financial results, best practice is to set a principle and follow the principle consistently regardless of whether it helps or hurts incentive payouts in any given year. We expect that most companies using after-tax performance measures will back out the earnings effect of the tax cut on after-tax measures."  MORE >>