Page 28 - Harvard Business Review, November-December 2018
P. 28
Incorporating three metrics is a balanced performing leader each year we’ve compiled the
and robust approach: While country- ranking since we began using our current
adjusted and industry-adjusted returns
risk being skewed toward smaller methodology, in 2014. And since Bezos first
companies (it’s easier to get large topped the list, in November of that year, the
returns if you start from a small base), company’s stock price has grown more than
the change in market capitalization is
skewed toward larger companies. sixfold.
To measure performance on nonnancial
issues, HBR consulted with 20 of the CEOs lead
Sustainalytics, a leading provider of companies based
environmental, social, and governance
(ESG) research and analytics that works outside their countries
primarily with nancial institutions and of birth. 32 have an MBA,
asset managers, and with CSRHub, which up from 29 last year. 34
collects, aggregates, and normalizes ESG
data from nine research rms and works have an engineering
mainly with companies that want to degree, up from 32 last
improve their ESG performance. We
computed one ESG rank using year. On average, they
Sustainalytics ratings and one using became CEO at age 44
CSRHub ratings for every company in our and have been in ofce
data set. To calculate the nal ranking,
we combined the overall nancial 16 years. 3 are women,
ranking (weighted at 80%) and the two up from 2 last year. 87
ESG rankings (weighted at 10% each),
omitting CEOs who left ofce before June are insiders, up from 81
30, 2018. last year.
HBR’s list of best-performing CEOs was
conceived by Morten T. Hansen, One of the tests of any leader is how he or she
Herminia Ibarra, and Urs Peyer. Previous adapts to a shifting environment. Among the
rankings have been published in HBR in
2010 and annually since 2013; the biggest shifts companies face right now is in the
rankings prior to 2014 utilized different global political environment. The rise of
methodologies. populism as a potent force is most apparent in
the election of Donald Trump and Great Britain’s
Download the Data Behind the
Ranking departure from the European Union, but it’s
evident in many other regions, too. For business
leaders, especially in manufacturing, this has
brought the threat (and sometimes the reality)
of tariffs and trade wars, along with industry-specific opportunities and challenges.
