Click here for the full rankings:
2016 S&P 500 WEALTH CREATORS INDEX
2016 MID-MARKET WEALTH CREATORS INDEX
One way to gauge a company’s net value creation is by using EVA, or Economic Value Added. EVA, essentially, is profit remaining after subtracting the full cost of the capital the business uses, including a minimum shareholder return to compensate for risk.
Chief Executive’s Wealth Creation Index (WCI) ranks the performance of companies in the S&P 500 index, and their CEOs, based on the EVA model. (Only companies for which the CEOs were in their roles for the three-year period ending on June 30, 2016, were ranked.)
For this year’s rankings, the ninth annual, we chose to offer a deeper dive into the metrics used to calculate WCI scores and illustrations of why and how they work. The full list of top wealth creators can be found at ChiefExecutive.net.
As the graphs illustrate, and as Drew Morris of Great Numbers! and Bennett Stewart of EVA Dimensions explain, the rankings were calculated based on four criteria:
1) EVA Momentum, which shows the trend in the growth of the firm’s EVA over the past three years;
2) EVA Margin, which calculates how profitable the firm is per dollar of sales, blending pricing power, operating efficiency and how well assets are managed into a single net-margin score;
3) Market-Implied EVA Momentum, which measures the expected future growth rate for economic profit as reflected in the company’s stock price; and
4) MVA Margin, which calculates Market Value Added, or MVA, as a percentage of sales. MVA is the difference between a firm’s stock-market value and the overall amount of capital it has invested, or the shareholder wealth created.
A look at one company’s success
How to Increase your WCI Score
Ranking CEO Wealth Creation: The Methodology
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
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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.
