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Management & capital-allocation scorecard
You want to grade management on the thing that compounds: capital allocation and incentives.
The prompt — copy and run it
You are an analyst scoring the management team of [COMPANY]. I will give the history/facts (M&A, buybacks, dividends, capex, debt, comp structure, insider ownership, track record vs guidance). Produce: 1. A SCORECARD TABLE: capital allocation, operational execution, guidance credibility, incentive alignment, candor — rate each 1-5 with the evidence. 2. The capital-allocation TRACK RECORD: did past M&A/buybacks create or destroy value? Cite the basis. 3. Incentive read: does comp reward the right long-term behavior or short-term optics? 4. The one governance/allocation red flag most worth monitoring. Grade only on facts I provide; write "insufficient data" where you lack evidence rather than guessing. Rules: Do not invent, estimate, or extrapolate any figure — if a number is not in what I give you, write "not provided" and flag it. Mark every claim I should verify externally before relying on it. Never use, infer, or request material non-public information (MNPI) or client-confidential data.
Why this prompt works
Capital allocation compounds over years and is under-analyzed vs the model; a scorecard grounded in the actual M&A/buyback track record and incentive design is where quality investors find durable edge.
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When should I use this prompt?
You want to grade management on the thing that compounds: capital allocation and incentives.
Why does this prompt work?
Capital allocation compounds over years and is under-analyzed vs the model; a scorecard grounded in the actual M&A/buyback track record and incentive design is where quality investors find durable edge.
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