This is a challenging time to be a CEO, according to Harvard Business Review. The global economy is growing slowly, political uncertainty plagues many nations and shareholders are growing more demanding.
Because of this, many of the world's company leaders fall prey to the temptation to look at only short-term successes, rather than try to deal with future uncertainties. But Harvard Business Review says CEOs should be judged on the success or failure of their entire tenure, not on the immediate company returns or on public opinion.
This year, the magazine gathered daily financial data for nearly 900 companies across the globe from the CEO’s first day on the job to April 30. CEOs were judged on three metrics: the country-adjusted total shareholder returns, the industry-adjusted total shareholder returns and the change in market capitalization. For last year and this year, how companies performed on environmental, social and governance issues also were included.
In large part, the good CEOs stick around and many remain at the top of HBR’s list year after year, while the poor ones move on. In 2015, turnover among global CEOs reached a record rate of nearly 17 percent and more than a fifth of the CEOs who left their posts since 2010 were dismissed. In comparison, the world’s 100 best CEOs have been on the job for an average of 17 years and have generated a 2,091 percent overall return on their stock since 1995, or a 20.2 percent annual return. Thirty have made the top 100 list for three years in a row.
Here is Harvard Business Review's list of top 10 CEOs, their companies and the country where they are located, in ascending order:
10. Jacques Aschenbroich, Valeo, France.
Aschenbroich has been CEO of the automotive parts and technology maker since 2009 and has pioneered technology to reduce CO2 emissions.
9. Benoit Potier, Air Liquide, France.
He has grown the compressed and specialty gasses company since he became CEO in 1997.
8. Elmar Degenhart, Continental, Germany.
He has been CEO of the automobile company since 2009.
7. Bernard Arnault, LVMH, France.
CEO of the European multinational luxury consumer goods conglomerate, Arnault also is chairman of LVMH and of Christian Dior, the main holding company of LVMH.
6. Jen-Hsun Huang, Nvidia, United States.
He has been CEO of the information technology company since 1993.
5. Roberto Egydio Setubal, Itau Unibanco, Brazil.
He has been CEO of the financial services company since 1994.
4. Herbert Hainer, Adidas, Germany.
Hainer announced his retirement in August. CEO since 2001, Hainer built the sportswear company into one of Germany’s top-performing blue-chip companies. Adidas shares rose 61 percent this year alone.
3. Pablo Isla, Inditex, Spain.
He is CEO of one of the world’s largest fashion companies.
2. Martin Sorrell, WPP, United Kingdom.
What started as a wire and plastics manufacturer has turned into one of the world’s largest communications and advertising networks, headed by Sorrell.
No. 1. Lars Rebien Sorensen, Novo Nordisk, Denmark.
Despite winning the top spot in this year’s list, Sorensen announced in September he is stepping down from the insulin-making company before his contract expires at the end of 2017. He will leave his position at the end of this year. Since he became CEO in 2000, the share price rose more than 840 percent, but it has now fallen 22 percent since its peak last December. The company’s product is facing increased competition from the United States.