Jeff Bezos named best performing CEO in the world

For its November edition, the Harvard Business Review focuses on the ranking of the highest performing CEO’s in the world (World being very American centric). Amazon founder and CEO, Jeff Bezos comes in at #1 on a list of 100 that also features Reed Hastings of online streaming service, Netflix (23), Mark Parker of sports apparel makers, Nike (76) and Ajaypal Banga of financial services corporation, Mastercard (64). The ranking was based on increase(s) in total shareholder return and market capitalization during the year in review.

Some of the highlights of the list are;

– 24 of the CEO’s featured have degrees in Engineering. To rationalize this, analysts suggest that Engineers tend to be popular because their degree instills a strong sense of “architectural thinking and logical problem solving” which are skills that would obviously aid the effective running of companies. However, Engineers tend to be looked down upon when considered for jobs in the creative fields like Fashion, Advertising, Publishing and Music.

– The list could be criticized for being built on a flawed premise. “Here’s a CEO who has frequently underperformed in the short term while continuing to make big bets on the future. Amazon often reports quarterly losses, even as sales continue to rise. And though the company is subject, like many firms, to dramatic share-price swings, Amazon and Bezos have a long-term track record of delivering shareholder value that is second to none.” Is it sensible to place the CEO of a company that has a mixed record on profit generation as the best performing CEO in the world? Or is Amazon and Bezos’s model that focuses on long term value so strong that it is unfair to judge it on what happens in the now?

– 29 of the CEO’s featured hold MBA’s.

– Only 2 women make the list. (Debra Cafaro of healthcare real estate investment trust, Ventas and Carol Meyrowitz of discount retailers, TJX ; the company who own T.J Maxx, Marshalls and Home Goods)

– 9 of the CEO’s on the list founded the companies they run.

– The median age of the CEO’s is 59 which flies in the face of the notion that the best CEO’s and leaders should be in their 40s as they tend to have a greater idea and understanding of the young and older demographics of their businesses.

– Disney CEO, Robert Iger earns the highest base salary on the list – $34, 321, 055.

– Amazon Prime, the program that allows Amazon users to pay a set amount guaranteeing next day delivery for a year is believed to generate more than $1 billion in membership fees.

via Harvard Business Review