Yes, there is a Chief Executive Magazine out there somewhere and they’ve decided to use their platform for good. Which is nice.
Rather than act as though CEOs are a breed apart and inherently special, they’ve come up with a way to measure CEO “value creation” across public companies. Contrary to popular belief, it ain’t all about earnings growth (which can be faked and manipulated for relatively long periods of time) or share price growth (which often has more to do with the stock market than with anything specific coming out of the C-Suite).
Have a look:
Now in its third year, the CEO wealth creation index developed by Chief Executive magazine, Applied Finance Group and Great Numbers! attempts to identify those business leaders who have performed best in creating true economic value—as opposed to mere accounting value—as measured by GAAP metrics. Creating value is, after all, why CEOs do what they do. The WCI leans heavily on the concept of economic margin (EM). (EM measures the degree to which a company makes money in excess of its risk-adjusted cost of capital.) While there is no single metric that is perfect, EM comes close, in that it isn’t dependent on share price in assessing management’s impact on value creation.
Interesting stuff. For the full rundown of CEOs or more on the methodology, follow the link below.