Who was the best CEO of 2023?
It has been a tricky year atop the corporate ladder. Sluggish growth in many markets has set bosses scrambling to rein in costs just as inflation has spurred their workers to demand hefty pay rises. Fractious geopolitics and toxic culture wars have left corporate chieftains feeling like tightrope-walkers. The craze for generative artificial intelligence (AI) has had them fretting over looming technological disruption, too.
Still, for some chief executives 2023 was a vintage year. To determine who did it best, The Economist has examined the performance of bosses of large listed companies in the S&P 1200 index, which covers most big economies bar China and India. We put aside those who have been in the job for less than three years, to avoid giving too much credit for replacing an inept predecessor. We then ranked the remaining chief executives by the returns they generated for shareholders relative to their sector’s average. The top ten by that measure included both household names and relative dark horses.
Among the top ten were bosses of two companies—Cameco, a Canadian miner, and PulteGroup, an American homebuilder—whose stellar results were thanks mostly to macroeconomic forces (a surge in uranium prices and a slump in sales of existing homes, respectively). We left them out. Also on the list were the chief executives of two buy-out firms, 3i and Melrose Industries, whose results were more a testament to the performance of the bosses running their portfolio companies than the financiers on top. We excluded them, too. Last, we also removed Richard Blickman of BE Semiconductor Industries, a Dutch maker of chipmaking tools. His pay was rejected by shareholders—not a good look for any chief executive.
2023-12-28 12:25:52
Article from www.economist.com