The quality of a CEO can make or break a company. At the same time, however, determining the precise value of a CEO's contribution to his or her company is easier said than done. That's where Chiefist.com, a new member-based service, comes in. It analyzes data on CEO compensation and company performance and then ranks companies according to management quality. What follows, in turn, is the third in a series of three Chiefist screens aimed at identifying the 10 best CEOs over the past decade.
In our first screen, we looked at the best CEOs according to share-price appreciation. In the second screen, we looked at the best CEOs according to market-capitalization growth. And in this screen, we'll look at the S&P 500's 10 best CEOs according to Chiefist's Business Value Enhancement Metric.
The BVEM is the creme de la creme of Chiefist's proprietary ranking formulas. Unlike the previous two screens, which focused on single metrics, the BVEM incorporates multiple quantifiable metrics of value creation in order to provide a more thorough picture of executive performance. Among other things, an executive's BVEM score includes margin expansion, earnings-per-share growth, return on equity, and growth in book value.
So without further ado:
|1||Steve Jobs*||Apple||IT Hardware||$1||2.55|
|7||J. Brett Harvey||
*Although Steve Jobs is no longer Apple's CEO, I deemed it appropriate to include him on the list.
Foolish bottom line
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Fool contributor John Maxfield, J.D., owns no shares in any of the companies mentioned in this article. The Motley Fool owns shares of Coach, National Oilwell Varco, and Apple. Motley Fool newsletter services have recommended buying shares of Coach, Amazon.com, Apple, Cummins, Gilead Sciences, and National Oilwell Varco, as well as creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.