Graziadio Study Ranks 100 Southern California CEOs According to Value Creation
Pepperdine Magazine is the feature magazine for Pepperdine University and its growing community of alumni, students, faculty, staff, and friends.
In May the Graziadio School of Business and Management and SCCO International, a global management consulting firm with a focus on consistent value management, released the 2012 CEO Performance 100, which ranks CEO performance of Southern California’s largest companies. The report names Occidental Petroleum’s CEO, Stephen Chazen, as the top value creator in Southern California.
The report ranked businesses based on economic profit and, thusly, was able to determine which companies are truly creating value for their investors.
The absolute value creation for each company was achieved by measuring profits earned above the cost of capital. The report highlighted strong profitability for many companies; 58 of the 100 CEOs reached positive economic profit. Conversely, 42 delivered negative economic profits.
“A company can have a great idea or product, but without the right strategy and leadership they may not create value,” said report coauthor John Paglia, an associate professor of finance and the director of the Pepperdine Private Capital Markets Project, which investigates privately held businesses’ access to capital and the lenders and investors that serve them. “Securing capital and using it wisely are absolutely pivotal for companies to maximize value for shareholders.”