The Harvard Business Review’s list was determined by assessing CEO performance over the entire length of their tenure, measuring overall shareholder return and increase in market capitalization. It also factored in two separate ratings of environmental, social and corporate governance, or ESG, performance.
“The list offers a stark reminder that even spectacular past performance doesn’t ensure job security,” HBR said in a statement.
Novo Nordisk, which is the world’s biggest producer of insulin, announced last month that Sørensen would retire by the end of 2016, two years ahead of schedule. The company had just issued a profit warning after facing intense competition in the U.S. market.
Sørensen has been at the helm since November, 2000 and his departure supports the notion that there should be no sacred cows when it comes to board deliberations about succession.
Coming in at number two on HBR’s list was Martin Sorrell, the CEO of British advertising company WPP since 1986.
Pablo Isla, the head of Spanish fast-fashion retailer and Zara-owner Inditex since 2005, rounded out the top three.
Amazon’s Jeff Bezos, who took out the number one spot in 2014, still led the pack purely on financial metrics. But the inclusion of the two ESG measures meant he dropped to 87th in 2015, before rising a little this year to 76th.
“In a world of short-termism, we’re heartened to see a group of leaders who have stayed the course and delivered strong performance over many years,” HBR editor Amy Bernstein said.
The highest-ranked CEO of an American company this year was Jen-Hsun Huang, the head of tech company NVIDIA, who took out 6th place.
On average, the top 100 CEOs oversaw an overall annual return on their stock of 20.2%. Their average starting age was 44 years old and they’d been in the top job for an average of 17 years.
The full list can be viewed here.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
