Chief Executive’s 2014 Wealth Creators Index: MasterCard CEO Ajay Banga Tops the List

For Chief Executive's seventh annual index, we ranked the top 100 public companies of the S&P 500 where the CEO has been in place for at least three years. Similarly, we also ranked the top 40 mid-market companies (see p. 43) from the Russell 3000 in two tiers: upper mid-market companies with revenues between $500 million and $1 billion, and a lower mid-market tier of companies with revenues between $100 million and $500 million.

Current common methods of measuring corporate performance are based on earnings, earnings growth and return on equity (ROE). While these have their place, it is possible for companies to take actions that increase earnings that do not create value, often in the hope of gaining stock analyst upgrades. Looking at performance from an EVA/MVA perspective corrects accounting distortions that are legitimate but do not offer a true picture of economic value. Using these metrics more accurately reflects which companies are generating wealth after factoring in their true cost of capital.

Topping the ranking this year is MasterCard, a Purchase, New York-based technology company in the global payments industry. It helps to have a business model that has proved wickedly successful at throwing off cash. The company returns to the top of the Wealth Creation Index (WCI). Then-CEO Robert Selander won in 2009. MasterCard operates the world’s fastest payments processing network connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries.

Since he assumed the role of CEO in 2010, Ajay Banga has accelerated the evolution of the $8.3 billion company, setting a vision and defining a culture that saw the company quickly shift from its historical focus on issuing banks. Ajay established a three-pronged strategy to diversify the business by:

  • Growing the core business (credit, debit, prepaid and commercial);
  • Diversifying across geographies and customers (expanding relationships with non-traditional segments); and
  • Building new businesses (addressing the increasing convergence of the physical and digital worlds).


MORE LIKE THIS

  • Get the CEO Briefing

    Sign up today to get weekly access to the latest issues affecting CEOs in every industry
  • upcoming events

    Roundtable

    Strategic Planning Workshop

    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:

    1. Lack of systematic approach (70%)
    2. Laundry lists without prioritization (68%)
    3. Decisions based on personalities rather than facts and information (65%)

     

    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.

    To sign up, select this option in your registration form. Additional fee of $695 will be added to your total.

    New York, NY: ​​​Chief Executive's Corporate Citizenship Awards 2017

    Women in Leadership Seminar and Peer Discussion

    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.

    To sign up, select this option in your registration form. Additional fee of $495 will be added to your total.

    Golf Outing

    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.

    To sign up, select this option in your registration form. Additional fee of $295 will be added to your total.