Recently I was going through the HBR and found a lovely article on "Best Performing CEOs in the World” and amazed to see how these guys changes their organizations.This blog is just little abstract .Article was written by Morten Hansen. First 5 position occupied by
- Steve jobs
- Yun Jong-Yong
- Alexey B . Miller
- John T. Chamber
- Mukesh D. Ambani
Top 3 are not even M.BA, and First 2 are leading the IT companies. In top 5 three are leading IT companies and 2 are running the show for Energy companies. As per the analysis by the author, CEO with the M.B.A degree performed better than the CEO with no M.B.A degree (point that he want to make here is that it is wrong to say that business schools had fostered destructive greedy behavior)
Author has not included
- Jack Welch
- Warren Buffet
- Larry Ellision
- Bill Gates
Because they want to include the people who has pick the CEO job not before 1995 and not after 2007. As per the article, author and his team analyzed the data of the companies and calculated the daily company returns for the entire length of each CEO tenure, and also calculated the daily returns for the 3 years following a CEO tenure (if applicable). Parameter they use to judge the CEO ranking are -
Country - adjusted company returns
Industry - adjusted company returns
Market capitalization change.
Other Interesting fact about the topics is Insider Vs Outside, Team of analyst who involve in the research found different answer for outsider Vs insider, some says that if a CEO is tapped from the outside he is more open and cable to install changes, but other says that outside are very expensive and for long term growth planning industry/firm specific example are very critical. Symantec CEO John Thompson was considered, as most successful Outsider CEO, where as Samsung and Reliance Industries CEO Yun Jong-Yong and Anil D Ambani was best Inside CEO.
I really like the author work.