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Veterans of value: short-term gains are for the birds--just ask shareholders. Here are the CEOs with real stamina, boasting the biggest returns over 25 years. (Chief Wealth Creators).


Lew Platt was surprised at the number of rankled customers who rang his office after he took over as CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.  of Hewlett-Packard in 1992. At first, he saw them as a small annoyance. The head of a company, he believed, should focus on more important issues. But one day his assistant suggested the phone calls might be a valuable source of information.

"I realized at once she was right," says Platt. "These were people who were unhappy enough to call the CEO. We formed a special group--reporting directly to me--to deal with the complaints and look for patterns." The company made key decisions based on the calls, including modifying its printers to make them more user-friendly.

Listening to customers emerges as the key unifying strategy in Chief Executive's list of the Top 25 Wealth Creators of the last quarter-century. It is an unusual ranking. Management accolades abound, and a number of publications, including this one, tout Tout

To promote a security in order to attract buyers.


tout

To foster interest in a particular company or security. For example, a broker might tout a security to a client in the hope that the client will purchase the security.
 their "top CEOs of the year." The trouble with those that focus on the short term, however, is that the undeserving too often make the list--people like Enron's Ken Lay, Tyco's Dennis Kozlowski Leo Dennis Kozlowski (born November 16 1946, Newark, New Jersey) is a former CEO of Tyco International, convicted of misappropriating more than $400 million of the company's funds. He is currently serving at least eight years and four months in prison.  and WorldCom's Bernie Ebbers.

Building market value over a long period of time is a lot harder than winning short-term acclaim. CE's list was derived by calculating -- using a formula developed by New York-based global consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee
consulting company

business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a
 Stern Stewart & Co. (see methodology, p. 48)--each CEO's contribution to market value during his or her tenure. Whoever added the most value since 1975 made the list, whether they achieved the rise in five years or 20. (As it turns out, most CEOs held their posts for about eight years).

Scouting scouting: see Boy Scouts; Girl Scouts.
scouting

Activities of various national and worldwide organizations for youth aimed at developing character, citizenship, and individual skills. Scouting began when Robert S.
 out the common threads among the business leaders on this diverse list isn't easy. No single management theory dominated. Harvey Golub Harvey Golub is the Chairman of the Board at the Campbell Soup Company as of January 2006. Previous employment
  • Chief Executive Officer of American Express 1993-2001
  • Senior partner with McKinsey & Company prior to joining American Express
References
 of American Express American Express (NYSE: AXP), sometimes known as "AmEx" or "Amex", is a diversified global financial services company, headquartered in New York City. The company is best known for its credit card, charge card and traveler's cheque businesses.  was partial to "re-engineering." Bill Steere of Pfizer adhered to the "core-competency" approach. Jack Welch For the illustrator named Jack Welch, see Jack Welch (illustrator)

John Francis "Jack" Welch, Jr. (born on November 19 1935 (1935--) (age 73) 
 of General Electric and Ralph Larsen of Johnson & Johnson preferred the Six Sigma Not to be confused with Sigma 6.
Six Sigma is a set of practices originally developed by Motorola to systematically improve processes by eliminating defects.[1] A defect is defined as nonconformity of a product or service to its specifications.
 rules for quality. Steere and Larsen, in fact, achieved their success by following polar-opposite market strategies. While Steere sharpened sharp·en  
tr. & intr.v. sharp·ened, sharp·en·ing, sharp·ens
To make or become sharp or sharper.



sharp
 his company's focus on pharmaceuticals, Larsen stressed a balance between pharmaceuticals, consumer goods consumer goods

Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and
 and medical tools divisions. "A lot of people tried to dissuade TO DISSUADE, crim. law. To induce a person not to do an act.
     2. To dissuade a witness from giving evidence against a person indicted, is an indictable offence at common law. Hawk. B. 1, c. 2 1, s. 1 5.
 me from that approach, because pharmaceutical pure plays were all the rage General Public's All the Rage was released in 1984 by I.R.S. Records. Track listing
  1. "Hot You're Cool"
  2. "Tenderness"
  3. "Anxious"
  4. "Never You Done That"
  5. "Burning Bright"
  6. "As a Matter of Fact"
  7. "Are You Leading Me On?"
  8. "Day-to-Day"
" in the 1990s, says Larsen.

While most companies on the list grew organically--as is the current fashion in a world now leery of the "big deal" --a few made their mark through mega-mergers. Steve Case Steve Case (born August 21, 1958) is a businessman best known as the co-founder and former chief executive officer and chairman of America Online (AOL). He reached his highest profile when he played an instrumental role in AOL's merger with Time Warner in 2000.  shored up AOL's future when he purchased Time Warner in 2000. Steere considers Pfizer's hostile takeover Hostile Takeover

A takeover attempt that is strongly resisted by the target firm.

Notes:
Hostile takeovers are usually bad news, as the employee moral of the target firm can quickly turn to animosity against the acquiring firm.
 of Warner-Lambert that same year a defining moment in his career. And Sandy Weill, CEO of Citigroup, was a mergers and acquisitions master.

No single personality type dominates. Extroverts and introverts, the arrogant and the unassuming all figure on the list. "If you think about politicians through history, Harry Truman and Winston Churchill, Margaret Thatcher Noun 1. Margaret Thatcher - British stateswoman; first woman to serve as Prime Minister (born in 1925)
Baroness Thatcher of Kesteven, Iron Lady, Margaret Hilda Thatcher, Thatcher
 and Franklin Roosevelt, you realize that there's no one type of person best suited for greatness," says Steere.

The ex-CEO of Pfizer concluded years ago that typecasting The word typecasting (past participle typecast) can mean more than one thing:
  • type conversion in computer programming
  • type conversion in aviation
  • typecasting (acting) in acting
  • Typecast, a Filipino band
  • Typecast (horse), American Champion racehorse
 in the managerial field is also a mistake. Early in his career, as head of a small division at Pfizer, Steere tried to come up with a more systematic approach to promotion.

"We hired an industrial psychologist to profile the personality type that would make the best manager," Steere recalls. "They came up with a list of qualities and a predictive test. The problem was that the government challenged it, saying it was prejudicial prej·u·di·cial  
adj.
1. Detrimental; injurious.

2. Causing or tending to preconceived judgment or convictions:
 to minorities. To be allowed to use the test, we had to prove that it was indeed predictive. And you know what? It wasn't. You never know when someone moves into a management job how they're going to do."

Even toughness is not necessarily a prerequisite for CEO success. William George William George may be:
  • Bill George, American Football player
  • William George, lawyer, former Archdruid of Wales, author, nephew of the former Prime Minister of the United Kingdom, David Lloyd George
  • William W.
, former CEO of Medtronic, says the most meaningful event in his management career was in drafting a letter to employees thanking them for their support as his wife underwent chemotherapy for breast cancer.

"I wrote about how it felt to be in the supporting, rather than the leadership, role for a change," recalls George. "The next day I got 400 e-mail responses. I'm still getting emails about that letter. It showed that CEOs can show themselves to be human."

Despite the many disparities among the Top 25, a few telling patterns emerge. For everyone on the list, pleasing customers is a personal obsession. Successful managers, it seems, pay close attention to what consumers want.

Lou Gerstner's reign at IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries)  was characterized by the large amount of time he spent with customers. He traveled the globe to find out how clients in different parts of the world felt about his company, and shaped corporate strategy accordingly. When Gerstner took over in 1993, IBM was going through a process of balkanization -- splitting into smaller, autonomous units that would have the agility to compete with the likes of Apple and Microsoft.

As it turned out, that was the last thing clients wanted. They valued IBM for its ability to provide "integrated solutions" to resolve all of a company's computing needs in a holistic way. Splintering the company, Gerstner realized, would deprive de·prive
v.
1. To take something from someone or something.

2. To keep from possessing or enjoying something.
 IBM of its most important market advantage. He spent his early years knitting the group together again.

Weill of Citigroup once said an important ingredient in his success was instructing his secretary not to screen calls. That mandate become more difficult in Weill's later years as constraints on his time increased, a change that some people believe compromised the legend's performance.

"It's easy to become insular insular /in·su·lar/ (-sdbobr-ler) pertaining to the insula or to an island, as the islands of Langerhans.

in·su·lar
adj.
Of or being an isolated tissue or island of tissue.
 if you're CEO," says Platt. "You have to force yourself to keep talking to Noun 1. talking to - a lengthy rebuke; "a good lecture was my father's idea of discipline"; "the teacher gave him a talking to"
lecture, speech

rebuke, reprehension, reprimand, reproof, reproval - an act or expression of criticism and censure; "he had to
 employees and customers. The problem with customers, in particular, is that if you're not proactive a lot of them are silent--they vote with their feet."

Sometimes, paying attention Noun 1. paying attention - paying particular notice (as to children or helpless people); "his attentiveness to her wishes"; "he spends without heed to the consequences"
attentiveness, heed, regard
 to customers means spotting new opportunities. Hewlett-Packard based its 1990s growth on a move down market--producing small, cheap printers and copiers for the mass consumer market. The Home Depot The Home Depot (NYSE: HD) is an American retailer of home improvement and construction products and services.

Headquartered in Vinings, just outside Atlanta in unincorporated Cobb County, Georgia, Home Depot employs more than 355,000 people and operates 2,164 big-box
 saw a chance to grow by branching out from its core do-it-yourself customer base. By adding new design-oriented stores, it was able to attract newly affluent families more likely to hire workers for their home projects. And to appeal to professional contractors, Home Depot began to offer bigger discounts on large purchases.

For many on the Top 25, branding was an important part of the customer-centric approach. "Branding is key because it tells consumers they won't be taking an unnecessary risk by dealing with that company," says Barbara Bund, a specialist in branding at MIT's Sloane School of Management. "This list is striking because of the number of strong brand names.

Part of the skill of brand management is knowing when to spread your name around more aggressively. Former Coca-Cola CEO Roberto Goizueta astutely realized that a soda called Diet Coke Diet Coke (sometimes known as Diet Coca-Cola, Coca-Cola Light or Coke Light) is a sugar-free soft drink produced and distributed by The Coca-Cola Company.  would carry a lot more weight with consumers than its predecessor, Tab. Previously, the Coke name had been reserved only for the company's flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. . Within a short time, Diet Coke had become the best-selling best·sell·er also best seller  
n.
A product, such as a book, that is among those sold in the largest numbers.



best
 sugar-free drink in the U.S.

Other times, brands must be closely guarded. Larsen of Johnson & Johnson was careful to use the name only on products that would benefit from a homey feel. "It's got a mother-baby image," says Larsen. "It doesn't work well when marketing medical treatments." One of Golub's first decisions as CEO was to prohibit American Express Financial Advisors from making cold calls. "It just didn't fit with the brand," he said at the time.

Image and marketing are just part of the equation. To build a long-term relationship with consumers, it helps if you can offer unique products. A number of entrepreneurs are on the Top 25: Michael Dell Michael Saul Dell (born February 23, 1965, in Houston, Texas) is the founder and CEO of Dell, Inc. Biography
Early life and education
The son of an orthodontist, Dell was born in to an upper-class Jewish family and attended Herod Elementary School in Houston,
, Bill Gates (person) Bill Gates - William Henry Gates III, Chief Executive Officer of Microsoft, which he co-founded in 1975 with Paul Allen. In 1994 Gates is a billionaire, worth $9.35b and Microsoft is worth about $27b.  and Arthur Blank Arthur M. Blank is an American businessman and a co-founder of Home Depot. Today he is known for his philanthropy and his ownership of the Atlanta Falcons team in the National Football League and the Georgia Force team in the Arena Football League.  were all founders as well as CEOs.

At the height of the economic boom in the late 1990s, attracting and retaining talented employees was corporate America's top concern. While those concerns have lessened as U.S. economic growth has slowed, CEOs on the list say getting the right people to do the job was key.

They also saw the wide use of stock options as a key performance incentive, though options recently have become an emblem of corporate greed. "Every employee had stock options at Amgen," says former CEO Gordon Binder Gordon Binder is currently managing director of Coastview Capital, LLC, and previously was chairman of Amgen[1]. He joined Amgen in 1982, and previously had executive roles at the United Geophysical Corporation and the System Development Corporation. . "It was part of what made the company a place where everyone wanted to work."

Many relished contact with employees. Citigroup's Weill often found himself in conflict with co-captain John Reed over whom to invite to corporate gatherings. While Reed favored more exclusive get-togethers, Well loved big parties with mid-level executives. In the early 1990s, Cisco's John Chambers John Chambers could be any of the following people:
  • John Chambers (scientist) one of the two scientists who formulated the Planet V Theory.
  • John Chambers (programmer), the creator of the S programming language and core member of the R programming language project.
 regularly had breakfast with all employees whose birthdays happened to fall that week. Years later, he reluctantly gave up the practice when the company got too big. "Cisco's focus on people was crucial to its growth," says Glenn Rifkin, author of Radical Marketing.

Good employee relations are important, but few CEOs manage to get through their careers without resorting to layoffs. Gerstner and Golub oversaw o·ver·saw  
v.
Past tense of oversee.
 massive layoffs. The important thing, says Binder binder: see combine.


An earlier Microsoft Office workbook file that let users combine related documents from different Office applications. The documents could be viewed, saved, opened, e-mailed and printed as a group.
, is not to be nice, but to be fair. "At times, getting rid of an underperforming worker is the only fair thing to do," he says. "Otherwise, other employees have to pick up the slack."

Leaders are often called upon to have "vision." The CEOs on the Top 25 certainly aimed high--but vision can be overrated Overrated was a Horde World of Warcraft guild, based on the US Black Dragonflight Realm. On November 2 2006, the majority of the guild members were indefinitely banned from the game for use of (or directly benefiting from) a third-party "wall-hack", used to bypass content .

In 1993, Gerstner told journalists that the "last thing IBM needed was a vision." IBM, he explained, had enough strategic plans -- too many, by his reckoning. What the group lacked was execution. Gerstner made sure day-to-day operations took priority over introspective in·tro·spect  
intr.v. in·tro·spect·ed, in·tro·spect·ing, in·tro·spects
To engage in introspection.



[Latin intr
 corporate reflection. At American Express, Golub felt early in his tenure that the company was too wounded to think about vision. Only later did he push his motto of building AmEx into the "best service brand in the world."

AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services.  in the 1990s made much of its corporate motto, ubiquitously posted in workstations around the company: "To build a global medium is as central to people's lives as the telephone or television... and even more valuable." In the end, though, this goal proved less important to AOL's growth than Case's decision to purchase the media group Time Warner.

As talented as the CEOs on the list may be, a good part of their success can be attributed to pure luck. As Al Ehrbar at Stern Stewart notes, virtually everyone on the list presided over their company during the heady days of the l990s boom. Many had good timing on their exit as well -- taking a step back to either chairmanship or full retirement before share prices began to fall.

Those who were left holding the bag are perhaps unfairly classified as "bad managers." Steve Ballmer of Microsoft, for instance, finds himself on the "worst" list, simply because he took over the helm at a tough moment.

"During the time I was CEO [1992-1999], frankly it was relatively easy to build market value," admits Platt. But as Binder of Amgen notes, CEOs must be prepared to take advantage of opportunities that come their way. "People who work harder and smarter have more luck," he says. A number of big names from the 1980s -- Xerox, Polaroid and Digital Equipment -- are notably missing from the ranking.

Besides maintaining focus on customers and employees, there seems to be no set formula for CEO success. Almost any well-chosen, well-executed management strategy will do. Yet there is one item that CEOs on the list say can't be sacrificed under any circumstances: honor. Dishonesty dis·hon·es·ty  
n. pl. dis·hon·es·ties
1. Lack of honesty or integrity; improbity.

2. A dishonest act or statement.

Noun 1.
 is a poison, they say, and will bring you down in the end.

"A leader must be honorable," says Larsen of J&J. "Getting involved with some of the shenanigans shenanigans
Noun, pl

Informal

1. mischief or nonsense

2. trickery or deception [origin unknown]
 you read about in the papers today is probably the best way to make sure your name won't appear on this kind of a list some day."
Top 25 WEALTH CREATORS OF THE PAST 25 YEARS

RANK  TICKER  COMPANY                       MVA

 1    MSFT    MICROSOFT                     628,385
 2    GE      GENERAL ELECTRIC              423,825
 3    AOL     AOL TIME WARNER               187,410
 4    IBM     INTL. BUSINESS MACHINES       179,292
 5    C       CITIGROUP                     168,698
 6    PFE     PFIZER                        160,164
 7    KO      THE COCA-COLA CO.             156,602
 8    AIG     AMERICAN INTERNATIONAL GROUP  144,698
 9    JNJ     JOHNSON & JOHNSON             111,625
10    HD      THE HOME DEPOT                105,269
11    HWP     HEWLETT-PACKARD                85,188
12    C       CITIGROUP                      83,974
13    XOM     EXXON MOBIL                    80,347
14    MRK     MERCK & CO.                    77,812
15    CSCO    CISCO SYSTEMS                  66,312
16    AXP     AMERICAN EXPRESS               66,016
17    DELL    DELL COMPUTER                  64,630
18    PG      PROCTER & GAMBLE               64,582
19    INTC    INTEL                          64,157
20    BMY     BRISTOL-MYERS SQUIBB           61,781
21    AMGN    AMGEN                          61,748
22    ORCL    ORACLE                         61,557
23    ABT     ABBOTT LABORATORIES            60,609
24    MDT     MEDTRONIC                      41,735
25    MO      PHILIP MORRIS COS.             41,634

RANK  TICKER  COMPANY                       CEO

 1    MSFT    MICROSOFT                     Bill Gates
 2    GE      GENERAL ELECTRIC              Jack Welch
 3    AOL     AOL TIME WARNER               Steve Case
 4    IBM     INTL. BUSINESS MACHINES       Lou Gerstner
 5    C       CITIGROUP                     Sandy Weill
 6    PFE     PFIZER                        Bill Steere
 7    KO      THE COCA-COLA CO.             Roberto Goizueta
 8    AIG     AMERICAN INTERNATIONAL GROUP  Maurice Greenberg
 9    JNJ     JOHNSON & JOHNSON             Ralph Larsen
10    HD      THE HOME DEPOT                Arthur Blank
11    HWP     HEWLETT-PACKARD               Lewis Platt
12    C       CITIGROUP                     John Reed
13    XOM     EXXON MOBIL                   Lee Raymond
14    MRK     MERCK & CO.                   Ray Gilmartin
15    CSCO    CISCO SYSTEMS                 John Chambers
16    AXP     AMERICAN EXPRESS              Harvey Golub
17    DELL    DELL COMPUTER                 Michael Dell
18    PG      PROCTER & GAMBLE              John Pepper
19    INTC    INTEL                         Craig Barrett
20    BMY     BRISTOL-MYERS SQUIBB          Charles Heimbold Jr.
21    AMGN    AMGEN                         Gordon Binder
22    ORCL    ORACLE                        Lawrence Ellison
23    ABT     ABBOTT LABORATORIES           Duane Burnham
24    MDT     MEDTRONIC                     William George
25    MO      PHILIP MORRIS COS.            Geoffrey Bible

RANK  TICKER  COMPANY                       PERIOD COVERED

 1    MSFT    MICROSOFT                     1986-1999
 2    GE      GENERAL ELECTRIC              1981-2000
 3    AOL     AOL TIME WARNER               1991-1999
 4    IBM     INTL. BUSINESS MACHINES       1993-2001
 5    C       CITIGROUP                     1993-2001
 6    PFE     PFIZER                        1991-2000
 7    KO      THE COCA-COLA CO.             1981-1997
 8    AIG     AMERICAN INTERNATIONAL GROUP  1992-2001
 9    JNJ     JOHNSON & JOHNSON             1989-2000
10    HD      THE HOME DEPOT                1981-2000
11    HWP     HEWLETT-PACKARD               1992-1999
12    C       CITIGROUP                     1998-1999
13    XOM     EXXON MOBIL                   1993-2001
14    MRK     MERCK & CO.                   1995-2001
15    CSCO    CISCO SYSTEMS                 1995-2001
16    AXP     AMERICAN EXPRESS              1993-2000
17    DELL    DELL COMPUTER                 1988-2001
18    PG      PROCTER & GAMBLE              1996-1998
19    INTC    INTEL                         1998-2001
20    BMY     BRISTOL-MYERS SQUIBB          1994-2001
21    AMGN    AMGEN                         1988-1999
22    ORCL    ORACLE                        1984-2001
23    ABT     ABBOTT LABORATORIES           1989-1998
24    MDT     MEDTRONIC                     1991-2001
25    MO      PHILIP MORRIS COS.            1994-2001

The Top 25 Wealth-Creators were ranked according to MVA score over the
course of their tenure as CEO.

Source: Stern Stewart & Co.
CHIEF WEALTH DESTROYERS

RANK  TICKER  COMPANY                  MVA       CEO

 1    MSFT    MICROSOFT                -304,923  Steven Ballmer
 2    T       AT&T                     -131,576  Michael Armstrong
 3    AOL     AOL TIME WARNER          -101,749  Gerald Levin
 4    HWP     HEWLETT-PACKARD           -72,102  Carlton Florina
 5    IBM     INTL. BUSINESS MACHINES   -62,284  John Akers
 6    WMT     WAL-MART STORES           -61,646  H. Lee Scott Jr.
 7    Q       QWEST COMMUNICATIONS      -55,883  Joseph Nacchio
 8    F       FORD MOTOR                -44,096  Jacques Nasser
 9    LU      LUCENT TECHNOLOGIES       -40,537  Richard McGinn
10    JDSU    JDS UNIPHASE              -37,489  Kevin Kalkhoven
11    WCOM    WORLDCOM                  -32,925  Bernard Ebbers
12    XRX     XEROX                     -27,342  Richard Thoman
13    GM      GENERAL MOTORS            -26,491  Richard Wagoner
14    MO      PHILIP MORRIS COS.        -26,286  Michael Miles
15    KO      THE COCA-COLA CO.         -25,178  Douglas Ivester

RANK  TICKER  COMPANY                  PERIOD COVERED

 1    MSFT    MICROSOFT                2000-2001
 2    T       AT&T                     1998-2001
 3    AOL     AOL TIME WARNER          2000-2001
 4    HWP     HEWLETT-PACKARD          2000-2001
 5    IBM     INTL. BUSINESS MACHINES  1985-1992
 6    WMT     WAL-MART STORES          2000-2001
 7    Q       QWEST COMMUNICATIONS     2000-2001
 8    F       FORD MOTOR               1999-2001
 9    LU      LUCENT TECHNOLOGIES      1997-2000
10    JDSU    JDS UNIPHASE             1992-2001
11    WCOM    WORLDCOM                 1993-2001
12    XRX     XEROX                         1999
13    GM      GENERAL MOTORS           2000-2001
14    MO      PHILIP MORRIS COS.       1992-1993
15    KO      THE COCA-COLA CO.        1998-1999

These CEOs were ranked according to MVA score over the course of their
tenure as CEO.

Source: Stern Stewart & Co.
CHIEF WEALTH CREATORS OF THE 1980'S AND 1990'S

 PERIOD
COVERED    RANK  TICKER  COMPANY                  MVA

1990's

2000-1995     1  GE      GENERAL ELECTRIC         337,992
              2  CSCO    CISCO SYSTEMS            252,616
              3  WMT     WAL-MART STORES          170,625
              4  MSFT    MICROSOFT                165,062
              5  C       CITIGROUP                158,095

1995-1990     1  GE      GENERAL ELECTRIC          64,908
              2  KO      THE COCA-COLA CO.         59,863
              3  MSFT    MICROSOFT                 44,668
              4  T       AT&T                      39,783
              5  MRK     MERCK & CO.               39,759

1980's

1990-1985     1  MO      PHILIP MORRIS COS.        27,886
              2  MRK     MERCK & CO.               23,341
              3  BMY     BRISTOL-MYERS SQUIBB      21,134
              4  WMT     WAL-MART STORES           20,925
              5  KO      THE COCA-COLA CO.         19,297

1985-1980     1  IBM     INTL. BUSINESS MACHINES   37,265
              2  GE      GENERAL ELECTRIC          13,195
              3  KO      THE COCA-COLA CO.          5,701
              4  CAT     CATERPILLAR                4,157
              5  F       FORD MOTOR                 3,672

 PERIOD
COVERED    CEO

1990's

2000-1995  JACK WELCH
           JOHN CHAMBERS
           DAVID GLASS
           BILL GATES
           SANDY WEILL

1995-1990  JACK WELCH
           ROBERTO GOIZUETA
           BILL GATES
           ROBERT ALLEN
           RAY GILMARTIN

1980's

1990-1985  HAMISH MAXWELL
           ROY VAGELOS
           RICHARD GELB
           DAVID GLASS
           ROBERTO GOIZUETA

1985-1980  JOHN OPEL
           JACK WELCH
           ROBERTO GOIZUETA
           LEE MORGAN
           PHILIP CALDWELL

These CEOs represent the top wealth creators, per MVA score, in each of
four five-year increments over the past two decades.


RELATED ARTICLE: Methodology and MVA MVA
abbr.
motor vehicle accident


MVA Motor vehicular/vehicle accident, see there


CEOS WERE MEASURED AND RANKED based on the change of Market Value Added-MVA--that occurred at the company during their tenure.

MVA is the primary measure of wealth creation. Simply put, it measures the difference between the company's market value--what it is worth for its investors now--and the cash that investors contributed to the company's business to purchase assets, build intangible assets Intangible Asset

An asset that is not physical in nature.

Notes:
Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets.
 and finance operations The execution of the joint finance mission to provide financial advice and guidance, support of the procurement process, providing pay support, and providing disbursing support.See also financial management. . Market value is measured as the total market value of the company, including debt and equity; MVA is market value minus total invested (or operating) capital. Capital includes the value of net working capital (current assets Current Assets

Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year.
 reduced by non-interest bearing liabilities), fixed assets fixed assets nplactivo sg fijo

fixed assets nplimmobilisations fpl

fixed assets fix npl
 including the value of operating leases Operating Lease

A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset.

Notes:
An operating lease is not capitalized it is accounted for as a rental expense.
 and intangible assets including, among other things, goodwill from pooling acquisitions and the capitalized value capitalized value n. anticipated earnings which are discounted (given a lower value) so that they represent a more realistic current value since projected earnings do not always turn out as favorably as expected or hoped.  of expenses that are economic investments, such as R&D and marketing.

We measured company MVA at the beginning and end of a CEO's tenure. MVAs were calculated at the end of each calendar year and were matched to CEO tenures.

Research for all MVA lists was compiled by Monika Nica of New York-based consulting firm Stern Stewart & Co.

Victoria Griffith heads the Boston office for the Financial Times. Send comments to features@chiefexecutive.net
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Title Annotation:Chief Executive (U.S.) rankings
Author:Griffith, Victoria
Publication:Chief Executive (U.S.)
Article Type:Statistical Data Included
Geographic Code:1USA
Date:Aug 1, 2002
Words:3104
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