Measuring CEO/Management Performance
The table below provides input data which we will use to compute ratios a), b), c), d) and e). These ratios were
previously defined at (link). Theses ratios then, in turn , will be used as inputs in a Net CEO/Management
Performance Algorithm. See the second Table below. This will be a preliminary algorithm. A more refined formula,
for CEO performance, (using more elaborate input data) will be presented later. The monetary figures below are in
$'s.
Number
of CEO
Com- Gross
% Shares
Short %of
Symbol Name/CEO
Employees
pensation
Profits
Insiders
Float
GE J. Immelt
316000
3230000
82.89B 0.06
0.3
HD R. Nardelli
234600
9160000
27.32B 1.1
1.6
INTC P. Otellini
99900
3290000
23.05B 3.26
1.2
HON D. Cote
116000
4500000
6.19B 0.13
0.8
WMT H. Scott
1800000
5230000
75.26B 41.21
0.8
XOM R.Tillerson
106100
2420000
157.68B 0
.17
0.9
The ratios below are based upon the data above and are defined at the link indicated above.
Symbol
Name/CEO
Ratio a Ratio b
Ratio c
Ratio d
Ratio e
GE
J.
Immelt 10.22
25662.54
262310.13 0.08
0.2
HD
R.
Nardelli
39.05 2982.53
116453.54
0.01 0.69
INTC
P.
Otellini
32.93 7006.08
230730.73
0.07 2.72
HON
D.
Cote
38.79 1375.56
53362.00
0.01 0.16
WMT
H.
Scott
2.91 14390.06
41811.00
0.01 51.51
XOM
R.
Tillerson
22.81 65157.02
1486145.15
0.61 0.19
Symbol Name/CEO
Net/CEO Rating
GE J. Immelt
71.82
HD R. Nardelli
21.23
INTC P. Otellini
50.30
HON D. Cote
8.17
WMT H. Scott
1 17.72
XOM R.Tillerson 330.75
The average rating will be seen to be 100. The lion's share of the weighting (among the ratios) went to
ratio c), the Gross Profit per employee. A casual glance will show the wide variation in ratio c), among
the different companies, in the table above. One is therefore not too surprised at the relatively wide variations
in the net ratings for the listed CEO's.
A more detailed discussion, plus a similar treatment for all 30 of the Dow components, will soon follow.
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