When Jensen Huang cofounded NVIDIA, in 1993, he focused on a single niche: building powerful computer chips to create graphics for fast-moving video games. As the company went public in 1999 and grew through the 2000s, video games remained its growth engine — but even back then, Huang, a Taiwanese immigrant who studied electrical engineering at Oregon State and Stanford, could see a different path forward. Data scientists were beginning to ask computers to perform much more sophisticated calculations more quickly, so NVIDIA began spending billions of dollars on research and development to create chips that would support artificial intelligence applications. By the mid-2010s its AI-focused chips had come to dominate this nascent market, showing up inside autonomous vehicles, robots, drone aircraft and dozens of other high-tech tools. One look at NVIDIA's stock chart shows how this bet has paid off: From late 2015 to late 2018, the company's stock grew 14-fold — a performance that puts Huang, 56, in the top spot on HBR's list of best-performing CEOs in the world this year.
Huang is a new face at #1, but he's no newcomer to the list: He ranked #2 in 2018 and #3 in 2017. (Last year's top performer, Pablo Isla, of the Spanish retailer Inditex, moved from CEO to chairman, taking him out of consideration for 2019.) That consistency is typical of our list. Unlike rankings that are based on subjective evaluations or short-term metrics, it relies on objective performance measures over a chief executive's entire tenure — and these "career numbers" tend to hold steady. It's no surprise, then, that 65 of last year's CEOs reappear this year.
They do so despite a change in our methodology. Since 2015 our ranking has been based not only on financial performance but also on environmental, social and governance (ESG) ratings. For the past four years we've weighted ESG scores to account for 20 per cent of each CEO's final ranking. This year we tweaked the formula, increasing that share to 30 per cent. The shift reflects the fact that a rapidly growing number of funds and individuals now focus on far more than bottom-line metrics when they make investment decisions. One sign of this changing sensibility: In August 2019, 181 US CEOs who are members of the Business Roundtable signed a statement affirming that the purpose of a corporation is to serve not just shareholders but four other groups of stakeholders: employees, customers, suppliers and communities.
The change in ESG weighting did create one casualty: Amazon CEO Jeff Bezos. On the basis of financial performance alone, Bezos has been the top CEO every year since 2014. However, he failed to make this year's list owing to Amazon's relatively low ESG scores. According to Sustainalytics, one of two ESG data firms that assist HBR with its ranking, those scores reflect risks created by working conditions and employment policies, data security and antitrust issues.
As in past years, women are underrepresented among the 100 leaders. The 2019 list does bring a small measure of good news, however: Four female CEOs made the ranking (all are in the top half), up from three in 2018 and just two in prior years. Each year when HBR publishes this list, some readers protest the paucity of women; each year we respond by saying it's the result not of the performance of female CEOs but of how few women serve in the role — a phenomenon we, too, find regrettable.
The CEOs who appear in this year's list display remarkable longevity — and illustrate how happy boards are to allow a high-performing leader to stay in the job for many years. The CEOs of the S&P 500 have an average tenure of 7.2 years; in comparison, HBR's best-performing CEOs have been in the job 15 years, on average. (Our methodology, which excludes CEOs with less than two years' tenure, may be a factor in why that number is so high.)
THE CEOS
1. Jensen Huang, NVIDIA
Industry: Information Technology | Country: United States | Start Year: 1993 | Insider: YES | MBA: NO | Financial Rank: 4 | Sustainalytics: 101 | CSRHub: 179
2. Marc Benioff, Salesforce.com
Industry: Information Technology | Country: United States | Start Year: 2001 | Insider: YES | MBA: NO | Financial Rank: 6 | Sustainalytics: 122 | CSRHub: 229
(Keith Block became co-CEO in August 2018)
3. François-Henri Pinault, Kering
Industry: Consumer Goods | Country: France | Start Year: 2005 | Insider: YES | MBA: YES | Financial Rank: 30 | Sustainalytics: 137 | CSRHub: 118
4. Richard Templeton, Texas Instruments
Industry: Information Technology | Country: United States | Start Year: 2004 | Insider: YES | MBA: NO | Financial Rank: 56 | Sustainalytics: 59 | CSRHub: 135
5. Ignacio Galán, Iberdrola
Industry: Utilities | Country: Spain | Start Year: 2001 | Insider: NO | MBA: YES | Financial Rank: 87 | Sustainalytics: 26 | CSRHub: 43
6. Shantanu Narayen, Adobe
Industry: Information Technology | Country: United States | Start Year: 2007 | Insider: YES | MBA: YES | Financial Rank: 43 | Sustainalytics: 204 | CSRHub: 82
7. Ajay Banga, Mastercard
Industry: Information Technology | Country: United States | Start Year: 2010 | Insider: YES | MBA: YES | Financial Rank: 13 | Sustainalytics: 166 | CSRHub: 284
8. Johan Thijs, KBC
Industry: Financial Services | Country: Belgium | Start Year: 2012 | Insider: YES | MBA: NO | Financial Rank: 78 | Sustainalytics: 36 | CSRHub: 111
9. Satya Nadella, Microsoft
Industry: Information Technology | Country: United States | Start Year: 2014 | Insider: YES | MBA: YES | Financial Rank: 86 | Sustainalytics: 99 | CSRHub: 13
10. Bernard Arnaut, LVMH
Industry: Consumer Goods | Country: France | Start Year: 1989 | Insider: NO | MBA: NO | Financial Rank: 7 | Sustainalytics: 337 | CSRHub: 154
11. Erik Engstrom, RELX
Industry: Commercial Services | Country: United Kingdom | Start Year: 2009 | Insider: YES | MBA: YES | Financial Rank: 97 | Sustainalytics: 75 | CSRHub: 2
12. Michael Mussallem, Edwards Lifesciences
Industry: Health Care | Country: United States | Start Year: 2000 | Insider: YES | MBA: NO | Financial Rank: 18 | Sustainalytics: 195 | CSRHub: 254
13. Elmar Degenhart, Continental
Industry: Automobile | Country: Germany | Start Year: 2009 | Insider: NO | MBA: NO | Financial Rank: 67 | Sustainalytics: 153 | CSRHub: 177
14. Anders Runevad, Vestas
Industry: Industrials | Country: Denmark | Start Year: 2013 | Insider: NO | MBA: YES | Financial Rank: 114 | Sustainalytics: 27 | CSRHub: 85
(Stepped down August 1, 2019)
15. Bernard Charlés, Dassault Systémes
Industry: Information Technology | Country: France | Start Year: 1995 | Insider: YES | MBA: NO | Financial Rank: 24 | Sustainalytics: 373 | CSRHub: 174
16. Nancy McKinstry, Wolters Kluwer
Industry: Commercial Services | Country: Netherlands | Start Year: 2003 | Insider: YES | MBA: YES | Financial Rank: 94 | Sustainalytics: 211 | CSRHub: 83
17. Hamid Moghadam, Prologis
Industry: Real Estate | Country: United States | Start Year: 1997 | Insider: YES | MBA: YES | Financial Rank: 52 | Sustainalytics: 111 | CSRHub: 382
18. Benoît Potier, Air Liquide
Industry: Materials | Country: France | Start Year: 1997 | Insider: YES | MBA: NO | Financial Rank: 66 | Sustainalytics: 61 | CSRHub: 384
19. Jean-Paul Agon, L'Oréal
Industry: Consumer Goods | Country: France | Start Year: 2006 | Insider: YES | MBA: NO | Financial Rank: 142 | Sustainalytics: 129 | CSRHub: 1
20. Mark Parker, Nike
Industry: Consumer Goods | Country: United States | Start Year: 2006 | Insider: YES | MBA: NO | Financial Rank: 22 | Sustainalytics: 522 | CSRHub: 183
21. Jacques Aschenbroich, Valeo
Industry: Automobile | Country: France | Start Year: 2009 | Insider: NO | MBA: NO | Financial Rank: 159 | Sustainalytics: 92 | CSRHub: 15
22. Simon Borrows, 3i
Industry: Financial Services | Country: United Kingdom | Start Year: 2012 | Insider: YES | MBA: YES | Financial Rank: 145 | Sustainalytics: 39 | CSRHub: 140
23. Jamie Dimon, JPMorgan Chase
Industry: Financial Services | Country: United States | Start Year: 2005 | Insider: YES | MBA: YES | Financial Rank: 84 | Sustainalytics: 188 | CSRHub: 311
24. Laurence Fink, BlackRock
Industry: Financial Services | Country: United States | Start Year: 1988 | Insider: YES | MBA: YES | Financial Rank: 5 | Sustainalytics: 308 | CSRHub: 571
25. Gregory Goodman, Goodman
Industry: Real Estate | Country: Australia | Start Year: 1995 | Insider: YES | MBA: NO | Financial Rank: 42 | Sustainalytics: 228 | CSRHub: 479
26. Lisa Su, Advanced Micro Devices
Industry: Information Technology | Country: United States | Start Year: 2014 | Insider: YES | MBA: NO | Financial Rank: 72 | Sustainalytics: 141 | CSRHub: 428
27. Xavier Huillard, Vinci
Industry: Industrials | Country: France | Start Year: 2006 | Insider: YES | MBA: NO | Financial Rank: 83 | Sustainalytics: 396 | CSRHub: 128
28. Alfred Chan, Hong Kong and China Gas
Industry: Utilities | Country: Hong Kong | Start Year: 1997 | Insider: YES | MBA: NO | Financial Rank: 47 | Sustainalytics: 432 | CSRHub: 266
29. Debra Cafaro, Ventas
Industry: Real Estate | Country: United States | Start Year: 1999 | Insider: NO | MBA: NO | Financial Rank: 32 | Sustainalytics: 415 | CSRHub: 364
30. Gilles Andrier, Givaudan
Industry: Materials | Country: Switzerland | Start Year: 2005 | Insider: YES | MBA: NO | Financial Rank: 133 | Sustainalytics: 254 | CSRHub: 55
31. Martin Bouygues, Bouygues
Industry: Industrials | Country: France | Start Year: 1989 | Insider: YES | MBA: NO | Financial Rank: 74 | Sustainalytics: 479 | CSRHub: 108
32. Chuck Robbins, Cisco Systems
Industry: Information Technology | Country: United States | Start Year: 2015 | Insider: YES | MBA: NO | Financial Rank: 186 | Sustainalytics: 38 | CSRHub: 30
33. Hisashi Ietsugu, Sysmex
Industry: Health Care | Country: Japan | Start Year: 1996 | Insider: YES | MBA: NO | Financial Rank: 85 | Sustainalytics: 529 | CSRHub: 29
34. Richard Fairbank, Capital One
Industry: Financial Services | Country: United States | Start Year: 1994 | Insider: YES | MBA: YES | Financial Rank: 23 | Sustainalytics: 560 | CSRHub: 293
35. Heinz-Jürgen Bertram, Symrise
Industry: Materials | Country: Germany | Start Year: 2009 | Insider: YES | MBA: NO | Financial Rank: 138 | Sustainalytics: 251 | CSRHub: 64
36. Michitaka Sawada, Kao
Industry: Consumer Goods | Country: Japan | Start Year: 2012 | Insider: YES | MBA: NO | Financial Rank: 177 | Sustainalytics: 77 | CSRHub: 60
37. Marillyn Hewson, Lockheed Martin
Industry: Industrials | Country: United States | Start Year: 2013 | Insider: YES | MBA: NO | Financial Rank: 97 | Sustainalytics: 301 | CSRHub: 219
38. Douglas Baker Jr., Ecolab
Industry: Materials | Country: United States | Start Year: 2004 | Insider: YES | MBA: NO | Financial Rank: 63 | Sustainalytics: 492 | CSRHub: 188
39. Fabrizio Freda, Estée Lauder
Industry: Consumer Goods | Country: United States | Start Year: 2009 | Insider: YES | MBA: NO | Financial Rank: 26 | Sustainalytics: 585 | CSRHub: 271
40. Reinhard Ploss, Infineon Technologies
Industry: Information Technology | Country: Germany | Start Year: 2012 | Insider: YES | MBA: NO | Financial Rank: 175 | Sustainalytics: 65 | CSRHub: 94
41. Carlos Rodriguez, ADP
Industry: Information Technology | Country: United States | Start Year: 2011 | Insider: YES | MBA: YES | Financial Rank: 115 | Sustainalytics: 175 | CSRHub: 268
42. Feike Sijbesma, DSM
Industry: Materials | Country: Netherlands | Start Year: 2007 | Insider: YES | MBA: YES | Financial Rank: 194 | Sustainalytics: 19 | CSRHub: 61
43. Shigenobu Nagamori, Nidec
Industry: Industrials | Country: Japan | Start Year: 1973 | Insider: YES | MBA: NO | Financial Rank: 16 | Sustainalytics: 501 | CSRHub: 426
44. Luis Maroto, Amadeus IT
Industry: Information Technology | Country: Spain | Start Year: 2011 | Insider: YES | MBA: YES | Financial Rank: 132 | Sustainalytics: 173 | CSRHub: 220
45. Douglas Peterson, S&P Global
Industry: Financial Services | Country: United States | Start Year: 2013 | Insider: YES | MBA: YES | Financial Rank: 134 | Sustainalytics: 237 | CSRHub: 161
46. Ínigo Meirás, Ferrovial
Industry: Industrials | Country: Spain | Start Year: 2009 | Insider: YES | MBA: YES | Financial Rank: 162 | Sustainalytics: 245 | CSRHub: 45
47. Michael Mahoney, Boston Scientific
Industry: Health Care | Country: United States | Start Year: 2012 | Insider: YES | MBA: YES | Financial Rank: 48 | Sustainalytics: 591 | CSRHub: 252
48. Jean-Pascal Tricoire, Schneider Electric
Industry: Industrials | Country: France | Start Year: 2006 | Insider: YES | MBA: YES | Financial Rank: 211 | Sustainalytics: 60 | CSRHub: 28
49. Glenn Chamandy, Gildan Activewear
Industry: Consumer Goods | Country: Canada | Start Year: 2004 | Insider: YES | MBA: NO | Financial Rank: 174 | Sustainalytics: 182 | CSRHub: 84
50. George Kwok Lung Hongchoy, Link REIT
Industry: Real Estate | Country: Hong Kong | Start Year: 2010 | Insider: YES | MBA: YES | Financial Rank: 80 | Sustainalytics: 439 | CSRHub: 275
51. Olivier Filliol, Mettler Toledo
Industry: Health Care | Country: Switzerland | Start Year: 2008 | Insider: YES | MBA: YES | Financial Rank: 130 | Sustainalytics: 149 | CSRHub: 350
52. Masahiko Uotani, Shiseido
Industry: Consumer Goods | Country: Japan | Start Year: 2014 | Insider: NO | MBA: YES | Financial Rank: 104 | Sustainalytics: 330 | CSRHub: 303
53. Frederick Smith, FedEx
Industry: Transportation | Country: United States | Start Year: 1971 | Insider: YES | MBA: NO | Financial Rank: 58 | Sustainalytics: 319 | CSRHub: 549
54. Tadashi Yanai, Fast Retailing
Industry: Retail | Country: Japan | Start Year: 1984 | Insider: YES | MBA: NO | Financial Rank: 7 | Sustainalytics: 486 | CSRHub: 625
55. Robert Iger, Disney
Industry: Communication | Country: United States | Start Year: 2005 | Insider: YES | MBA: NO | Financial Rank: 36 | Sustainalytics: 570 | CSRHub: 429
56. Michael Zahn, Deutsche Wohnen
Industry: Real Estate | Country: Germany | Start Year: 2008 | Insider: YES | MBA: NO | Financial Rank: 75 | Sustainalytics: 366 | CSRHub: 457
57. Michael Lamach, Ingersoll-Rand
Industry: Industrials | Country: United States | Start Year: 2010 | Insider: YES | MBA: YES | Financial Rank: 134 | Sustainalytics: 343 | CSRHub: 207
58. Rune Bjerke, DNB
Industry: Financial Services | Country: Norway | Start Year: 2007 | Insider: NO | MBA: NO | Financial Rank: 205 | Sustainalytics: 52 | CSRHub: 171
(Stepped down September 1, 2019)
59. Mike Lawrie, DXC Technology
Industry: Information Technology | Country: United States | Start Year: 2012 | Insider: YES | MBA: YES | Financial Rank: 123 | Sustainalytics: 130 | CSRHub: 484
(Stepped down September 11, 2019)
60. Peter Wennink, ASML
Industry: Information Technology | Country: Netherlands | Start Year: 2013 | Insider: YES | MBA: NO | Financial Rank: 248 | Sustainalytics: 24 | CSRHub: 34
61. Jean-François van Boxmeer, Heineken
Industry: Consumer Goods | Country: Netherlands | Start Year: 2005 | Insider: YES | MBA: NO | Financial Rank: 201 | Sustainalytics: 110 | CSRHub: 185
62. Tim Cook, Apple
Industry: Information Technology | Country: United States | Start Year: 2011 | Insider: YES | MBA: YES | Financial Rank: 124 | Sustainalytics: 406 | CSRHub: 265
63. Ma Huateng, Tencent
Industry: Communication | Country: China | Start Year: 1998 | Insider: YES | MBA: NO | Financial Rank: 2 | Sustainalytics: 600 | CSRHub: 644
64. Carlos Tavares, Peugeot
Industry: Automobile | Country: France | Start Year: 2014 | Insider: NO | MBA: NO | Financial Rank: 250 | Sustainalytics: 82 | CSRHub: 14
65. Paolo Rocca, Tenaris
Industry: Energy | Country: Argentina | Start Year: 2002 | Insider: YES | MBA: NO | Financial Rank: 65 | Sustainalytics: 329 | CSRHub: 647
66. Florentino Pérez Rodriguez, ACS
Industry: Industrials | Country: Spain | Start Year: 1993 | Insider: YES | MBA: NO | Financial Rank: 53 | Sustainalytics: 626 | CSRHub: 415
67. David Simon, Simon Property
Industry: Real Estate | Country: United States | Start Year: 1995 | Insider: YES | MBA: YES | Financial Rank: 15 | Sustainalytics: 606 | CSRHub: 620
68. Dean Connor, Sun Life Financial
Industry: Financial Services | Country: Canada | Start Year: 2011 | Insider: YES | MBA: NO | Financial Rank: 195 | Sustainalytics: 188 | CSRHub: 197
69. Oliver Bäte, Allianz
Industry: Financial Services | Country: Germany | Start Year: 2015 | Insider: YES | MBA: YES | Financial Rank: 249 | Sustainalytics: 72 | CSRHub: 68
70. Jeffrey Sprecher, Intercontinental Exchange
Industry: Financial Services | Country: United States | Start Year: 2000 | Insider: YES | MBA: YES | Financial Rank: 27 | Sustainalytics: 619 | CSRHub: 568
71. George Cope, BCE
Industry: Communication | Country: Canada | Start Year: 2008 | Insider: YES | MBA: NO | Financial Rank: 219 | Sustainalytics: 156 | CSRHub: 136
(Will step down January 5, 2020)
72. Takahisa Takahara, Unicharm
Industry: Consumer Goods | Country: Japan | Start Year: 2004 | Insider: YES | MBA: NO | Financial Rank: 113 | Sustainalytics: 460 | CSRHub: 330
73. Greg Case, Aon
Industry: Financial Services | Country: United Kingdom | Start Year: 2005 | Insider: NO | MBA: YES | Financial Rank: 31 | Sustainalytics: 554 | CSRHub: 621
74. Yves Guillemot, Ubisoft
Industry: Communication | Country: France | Start Year: 1988 | Insider: YES | MBA: NO | Financial Rank: 89 | Sustainalytics: 512 | CSRHub: 402
75. Marc Casper, Thermo Fisher Scientific
Industry: Health Care | Country: United States | Start Year: 2009 | Insider: YES | MBA: YES | Financial Rank: 63 | Sustainalytics: 707 | CSRHub: 332
76. Jean-Sébastien Jacques, Rio Tinto
Industry: Materials | Country: United Kingdom | Start Year: 2016 | Insider: YES | MBA: NO | Financial Rank: 168 | Sustainalytics: 108 | CSRHub: 467
77. Pascal Soriot, AstraZeneca
Industry: Health Care | Country: United Kingdom | Start Year: 2012 | Insider: NO | MBA: YES | Financial Rank: 202 | Sustainalytics: 160 | CSRHub: 257
78. Simon Wolfson, Next
Industry: Retail | Country: United Kingdom | Start Year: 2001 | Insider: YES | MBA: NO | Financial Rank: 91 | Sustainalytics: 607 | CSRHub: 333
79. Raymond McDaniel Jr., Moodyʼs
Industry: Financial Services | Country: United States | Start Year: 2005 | Insider: YES | MBA: NO | Financial Rank: 90 | Sustainalytics: 412 | CSRHub: 533
80. Daniel Amos, Aflac
Industry: Financial Services | Country: United States | Start Year: 1990 | Insider: YES | MBA: NO | Financial Rank: 17 | Sustainalytics: 671 | CSRHub: 618
81. Bobby Kotick, Activision Blizzard
Industry: Communication | Country: United States | Start Year: 1991 | Insider: YES | MBA: NO | Financial Rank: 11 | Sustainalytics: 461 | CSRHub: 858
82. James Robo, NextEra Energy
Industry: Utilities | Country: United States | Start Year: 2012 | Insider: YES | MBA: YES | Financial Rank: 126 | Sustainalytics: 294 | CSRHub: 493
83. Paul Perreault, CSL
Industry: Health Care | Country: Australia | Start Year: 2013 | Insider: YES | MBA: NO | Financial Rank: 142 | Sustainalytics: 595 | CSRHub: 122
84. Ivan Menezes, Diageo
Industry: Consumer Goods | Country: United Kingdom | Start Year: 2013 | Insider: YES | MBA: YES | Financial Rank: 283 | Sustainalytics: 58 | CSRHub: 5
85. André Desmarais, Power Corporation of Canada
Industry: Financial Services | Country: Canada | Start Year: 1996 | Insider: YES | MBA: NO | Financial Rank: 116 | Sustainalytics: 276 | CSRHub: 574
(Tie)
85. Paul Desmarais Jr., Power Corporation of Canada
Industry: Financial Services | Country: Canada | Start Year: 1996 | Insider: YES | MBA: YES | Financial Rank: 116 | Sustainalytics: 276 | CSRHub: 574
87. Alfred Kelly Jr., Visa
Industry: Information Technology | Country: United States | Start Year: 2016 | Insider: NO | MBA: YES | Financial Rank: 186 | Sustainalytics: 291 | CSRHub: 246
88. Sheng Yue Gui, Geely Automobile
Industry: Automobile | Country: China/Hong Kong | Start Year: 2006 | Insider: YES | MBA: YES | Financial Rank: 56 | Sustainalytics: 686 | CSRHub: 464
89. Piyush Gupta, DBS Bank
Industry: Financial Services | Country: Singapore | Start Year: 2009 | Insider: NO | MBA: YES | Financial Rank: 152 | Sustainalytics: 290 | CSRHub: 414
90. Colin Goldschmidt, Sonic Healthcare
Industry: Health Care | Country: Australia | Start Year: 1993 | Insider: YES | MBA: NO | Financial Rank: 100 | Sustainalytics: 521 | CSRHub: 427
91. Marc Grynberg, Umicore
Industry: Materials | Country: Belgium | Start Year: 2008 | Insider: YES | MBA: NO | Financial Rank: 215 | Sustainalytics: 265 | CSRHub: 151
92. Jussi Pesonen, UPM
Industry: Materials | Country: Finland | Start Year: 2004 | Insider: YES | MBA: NO | Financial Rank: 253 | Sustainalytics: 107 | CSRHub: 133
93. Leonard Schleifer, Regeneron Pharmaceuticals
Industry: Health Care | Country: United States | Start Year: 1988 | Insider: YES | MBA: NO | Financial Rank: 19 | Sustainalytics: 682 | CSRHub: 654
94. Jens Bjorn Andersen, DSV
Industry: Transportation | Country: Denmark | Start Year: 2008 | Insider: YES | MBA: NO | Financial Rank: 173 | Sustainalytics: 230 | CSRHub: 389
95. Björn Rosengren, Sandvik
Industry: Industrials | Country: Sweden | Start Year: 2015 | Insider: NO | MBA: NO | Financial Rank: 270 | Sustainalytics: 143 | CSRHub: 38
(Will step down February 1, 2020)
96. Masayoshi Son, SoftBank
Industry: Communication | Country: Japan | Start Year: 1981 | Insider: YES | MBA: NO | Financial Rank: 10 | Sustainalytics: 703 | CSRHub: 699
97. Daniel Hajj Aboumrad, América Móvil
Industry: Communication | Country: Mexico | Start Year: 2000 | Insider: YES | MBA: NO | Financial Rank: 49 | Sustainalytics: 508 | CSRHub: 732
98. Gary Dickerson, Applied Materials
Industry: Information Technology | Country: United States | Start Year: 2013 | Insider: YES | MBA: YES | Financial Rank: 207 | Sustainalytics: 347 | CSRHub: 167
99. Brian Roberts, Comcast
Industry: Communication | Country: United States | Start Year: 2002 | Insider: YES | MBA: NO | Financial Rank: 68 | Sustainalytics: 604 | CSRHub: 570
100. Bruce Flatt, Brookfield Asset Management
Industry: Financial Services | Country: Canada | Start Year: 2002 | Insider: YES | MBA: NO | Financial Rank: 25 | Sustainalytics: 855 | CSRHub: 525
How we calculated the rankings
To compile our list of the world's best-performing CEOs, we began with the companies that at the end of 2018 were in the S&P Global 1200, an index that reflects 70 per cent of the world's stock market capitalisation and includes firms in North America, Europe, Asia, Latin America and Australia. We excluded CEOs who'd been in the job for less than two years to ensure that we had a sufficient track record to evaluate. We also omitted those who left office before July 31, 2019. All told, we ended up with 883 CEOs from 876 companies (several companies had co-CEOs) based in 29 countries.
Our research team was headed by Nana von Bernuth, an adjunct professor at INSEAD, with assistance from the coders Peggy Lam and Onorina Buneanu and the data consultants Morand Studer and Daniel Bernardes of Eleven Strategy. The team gathered each company's daily financial data, as compiled by Datastream and Worldscope, from the CEO's first day on the job until April 30, 2019. (For the handful of CEOs who took office before 1995, we calculated returns using a start date of January 1, 1995, because prior industry-adjusted returns were unavailable.) We then calculated three metrics for each CEO's tenure: the total shareholder return (including dividends reinvested) adjusted by country to offset any increase in return attributable merely to an improvement in the local stock market; the TSR adjusted by industry to offset any increase resulting from rising fortunes in the overall industry; and change in market capitalisation (adjusted for dividends, share issues and share repurchases), measured in inflation-adjusted US dollars.
We then ranked each CEO — from 1 (best) to 883 (worst) — on each financial metric and averaged the three rankings to obtain an overall financial rank. Incorporating three metrics is a balanced and robust approach: While country-adjusted and industry-adjusted returns risk being skewed toward smaller companies (it's easier to get large returns if you start from a small base), the change in market capitalisation is skewed toward larger companies.
To measure performance on nonfinancial issues, HBR consulted with Sustainalytics, a leading provider of environmental, social and governance (ESG) research and analytics that works primarily with financial institutions and asset managers. We also used CSRHub, which collects, aggregates and normalises more than 600 ESG data sources, including eight data sets from leading ESG research firms, and works mainly with companies that want to improve their ESG performance. We computed one ESG rank using Sustainalytics ratings and one using CSRHub ratings for every company in our data set. To calculate the final ranking, we combined the overall financial ranking (weighted at 70 per cent) and the two ESG rankings (weighted at 15 per cent each).
HBR's list of best-performing CEOs was conceived by Morten T. Hansen, Herminia Ibarra and Urs Peyer. Previous rankings were published in HBR in 2010, 2013 and each year since, but the methodology has changed several times during that span.
Written by: Harvard Business Review staff
© 2019 Harvard Business School Publishing Corp. Distributed by The New York Times Licensing Group