|[January 02, 2013]
Harvard Business Review Publishes List of the 100 Best CEOs in the World
BOSTON --(Business Wire)--
Harvard Business Review has published an article ranking the top
100 CEOs in the world. The article, "The
Best-Performing CEOs in the World," which appears in the
January-February issue of the magazine, offers the only ranking of
global CEOs' performance over their entire tenure.
Harvard Business Review, January/February 2013 (Photo: Business Wire)
The list, compiled by Morten T. Hansen, Herminia Ibarra, and Urs Peyer
all of INSEAD, is based on rigorous analysis of more than 3,000 CEOs
around the world and incorporates three metrics: industry-adjusted
shareholder returns, country-adjusted shareholder returns, and increase
in market capitalization over each CEO's tenure.
"The knock on most business leaders is that they focus on quarterly
earnings at the expense of longer-term performance," said Hansen,
Professor in Entrepreneurship at INSEAD and also at the University of
California, Berkeley. "We wanted to shine a spotlight on CEOs worldwide
who had created long-term value for their companies."
"Unlike other rankings that are based on popularity or reputation, this
list is based solely on hard data and evaluates which chief executives
delivered the most solid results over the long term," said Adi Ignatius, Harvard
Business Review Editor-in-Chief.
Among the authors' findings:
Amazon CEO Jeff Bezos is the world's number one living CEO, with only
the late Steve Jobs (News - Alert) holding a better record. Under Bezos' leadership,
Amazon delivered industry-adjusted shareholder rturns of 12,266% and
saw its value increase by $111 billion.
Only three Chinese companies' CEOs made the top 100, though 17% of all
the executives studied were from China. The highest ranking Chinese
CEO on the list is Li Jiaxiang, former CEO of Air China.
The highest-ranked woman on the list is HP CEO Meg Whitman, whose
performance as the CEO of eBay (News - Alert) from 1998 to 2008 earned her the #9
spot. Whitman is only one of two women who made the top 100, the other
being Dong Mingzhu, CEO of China's Gree Electric Appliances.
Despite holding six of the top 10 slots, U.S. CEOs performed on
average lower than their Latin American, Indian, and British
Chief executives from emerging markets earned four of the top 10
slots: Yun Jong-Yong, former CEO of Samsung (News - Alert) Electronics at #3, Roger
Agnelli, formerly of Brazilian mining company Vale at #4, Chung
Mong-Koo of Hyundai at #6, and Y.C. Deveshwar of Indian consumer goods
company ITC at #7.
Overall, insiders-CEOs promoted from within-did better than outsiders.
When looking at the entire group of CEOs studied, insiders' average
rank was 154 places higher than outsiders', with insiders getting
better results in the United States, the United Kingdom, and Latin
America. The authors found no difference between insiders and
outsiders in continental Europe, China, and India.
The top 100 CEOs from the ranking performed exceptionally well: On
average they delivered a total shareholder return of 1,385% during
their tenures and increased their firms' market value by $40.2 billion.
The CEO Scorecard was first introduced three years ago in Harvard
Business Review. This year's ranking has been expanded along two
important dimensions: making the group of CEOs studied truly global-the
authors drew from a pool of 3,143 CEOs in 37 countries-and examining
which CEOs and companies were able to do well not only financially but
also in terms of corporate social and environmental performance.
While no correlation between financial results and social responsibility
was found, numerous examples of high-performing CEOs "doing well and
doing good" emerged, including Franck Riboud of Danone and Alessandro
Carlucci of Natura, who both have confronted the key social or
environmental issue in their industry (in Danone's case, obesity and
unhealthful food consumption; in Natura's, deforestation and poverty).
Other role models from firms rated highly for social responsibility
included the CEOs of Adidas, Inditex, Hermès International, and Eaton (News - Alert),
who moved into the top 15% of financial performers in this year's study.
"These trendsetting CEOs not only reject the idea that financial market
demands are more important than stakeholders' needs but also demonstrate
that companies can excel at meeting both," said Ibarra, the Cora Chaired
Professor of Leadership and Learning, Professor of Organizational
Behavior, and Area Chair for the Organizational Behavior Department at
To see an interactive version of the Top 100 list and browse it by CEO
ranking, location, and demographics, visit hbr.org or download the Harvard
Business Review iPad app.
About Harvard Business Review
Harvard Business Review is the leading destination for smart
management thinking. Through its flagship magazine, 11 international
licensed editions, books from Harvard Business Review Press, and digital
content and tools published on HBR.org,
Harvard Business Review provides professionals around the world
with rigorous insights and best practices to lead themselves and their
organizations more effectively and to make a positive impact.
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