Chief Executive Magazine and chiefexecutive.net are running the third annual list of CEOs that are value creators and value destroyers . The standard measurement of a CEO doing well is the stock price, but there are influences on a stock price that may or may not happen. For instance Apple’s stock price barely budged when news broke that the iPhone was going to be offered on the Verizon network. The stock didn’t move because it was already priced in – investors expected it.
The measurement Chief Executive Magazine uses is:
Economic Margin (EM) is calculated as (operating cash flow – capital charge)/invested capital. Companies with positive EM (greater than 0 percent) are creating wealth; those with negative EM are destroying it.
Here’s a portion of the list :
|Overall Ranking||’09 Rank||Change from ’09 Rank||MVIC||3 Yr. EM||EM Change||Management Quality Score||Company||CEO||CEO Last Name|
|1||A||A||A||A||Priceline.com||Jeffery H. Boyd||Boyd|
|2||23||21||A||A||A||A||AFLAC||Daniel P. Amos||Amos|
|3||2||-1||A||A||A||A||Federated Investors||J. Christopher Donahue||Donahue|
|4||35||31||A||A||A||A||Apple||Steven P. Jobs||Jobs|
|5||4||-1||A||A||B||A||Amazon.com||Jeffrey P. Bezos||Bezos|
|6||A||A||B||A||Colgate-Palmolive||Ian M. Cook||Cook|
|7||7||A||B||A||A||Ecolab||Douglas M. Baker, Jr.||Baker|
|9||40||31||A||A||B||A||Fastenal||Willard D. Oberton||Oberton|
|10||6||-4||A||A||C||A||C.H. Robinson Worldwide||John P. Wiehoff||Wiehoff|
Malcolm Gladwell Talking about Outliers on Charlie Rose