Nominees for CEO of the Year
It's a strong group this year.
Once again, it's time to announce the list of our finalists for CEO of the Year. As Morningstar's universe of covered stocks has expanded over the past couple of years, I've spent a lot of time listening to horror stories of poor corporate governance and simple-minded capital allocation. So, it's truly a pleasure to focus on a small group of managers who respect their shareholders, run their companies well, and aren't afraid to pursue the road less traveled.
As a reminder, here's what we look for in selecting our CEO of the Year. First, we're looking for a manager who has added value--not just someone who was in the right place at the right time, but whose strategic decisions and capital allocation increased the intrinsic value of his or her company. Second, we want to see strong corporate stewardship. This means corporate policies that respect shareholders and a compensation structure that rewards long-term value-creation and is tied to corporate performance. We don't like to see managers paid for breathing. Third, we like to see managers who think (and act) independently. With so many pressures to think short-term and follow whatever strategy the consultants are pushing this year, it's tough to go against the grain--but that's what we're looking for. Finally, of course, we want to see stellar long-run financial performance that has created real value for shareholders.
Pat Dorsey does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.