Category: Corporate Governance

The CEORater CEO Hall of Fame Class of 2020

The CEORater CEO Hall of Fame Class of 2020

For our inaugural CEO Hall of Fame class we selected CEO Hall of Fame members largely based upon their contribution toward building their respective companies as well as creating long-term shareholder value. Our selection process included a variety of quantitative and qualitative elements including financial operating performance, total stock returns, longevity, innovation, corporate governance and … Continue reading The CEORater CEO Hall of Fame Class of 2020

Fraud – A Sign of The Times

Fraud – A Sign of The Times

Fraud always spikes during frothy markets. If it feels like we are beating you over the head as it relates to Quality CEOs and CEO Integrity it is because we are. High Quality, High Integrity CEOs are the best preventive measure against getting burned by fraudulent companies. 2020 has delivered massive equity market valuation froth … Continue reading Fraud – A Sign of The Times

Poor Executive Management Must Be Held Accountable

Poor Executive Management Must Be Held Accountable

The airlines knowingly placed themselves between a rock and a hard place when they decided to gorge on cheap debt for the purpose of funding share buyback plans designed to boost executive compensation. The lack of financial wiggle room is of their own doing. It's time for the airlines to restructure, to shrink capacity to … Continue reading Poor Executive Management Must Be Held Accountable

Narcissist CEOs Drive Risky Corporate Behavior

Narcissist CEOs Drive Risky Corporate Behavior

CEOs that allow themselves to be ruled by ego and emotion, that need to see their name in news headlines ("Narcissist" CEOs as defined by Stanford Professor Charles O'Reilly), are more likely to take significant risks - including impulsive M&A transactions - at the expense of a thoughtful, long-term operating strategy. Stanford's O'Reilly has done … Continue reading Narcissist CEOs Drive Risky Corporate Behavior

Three High Quality CEOs

Three High Quality CEOs

We recently called out several CEOs for putting forth less than optimal efforts. Conversely, here are several long-time, high quality CEOs - two of them founders - of market-leading companies. Tickers mentioned: Clarivate Analytics (tkr: CCC), CoStar Group (tkr: CSGP), SS&C Technologies (tkr: SSNC) Here are three quality CEOs where investors won't have to worry … Continue reading Three High Quality CEOs

CEO Quality Is Critical

CEO Quality Is Critical

At CEORater we evaluate CEOs on 42 attributes across four quadrants (Operations-related, Strategy & Tactics, Investor-related and Personality-related attributes). Great CEOs are time-tested, have a well-rounded skill set, are high character, are intellectually curious, the list goes on. Several founders and CEOs recently reminded us of their blind spots. Tickers mentioned: GM, ORCL, TSLA Mary … Continue reading CEO Quality Is Critical

Questionable M&A Strategy (Oracle) and Due Diligence (GM)

Questionable M&A Strategy (Oracle) and Due Diligence (GM)

Two head-scratching Technology deals. Oracle's TikTok deal appears to be smoke and mirrors while GM's due diligence on its Nikola deal appears to be surface-level at best. Both wreak of desperation. Oracle's TikTok deal is high on sizzle, low on substance. Assuming the Oracle/TikTok deal receives U.S. government approval and ultimately closes (we are not … Continue reading Questionable M&A Strategy (Oracle) and Due Diligence (GM)

Carlos Brito Is On His Way Out as BUD CEO. Did BUD’s Board Try To Help Brito?

Carlos Brito Is On His Way Out as BUD CEO. Did BUD’s Board Try To Help Brito?

CEO's need to be comfortable with some level of diversification to keep their companies relevant over the long-term. Long-time Anheuser-Busch InBev (ticker: BUD) CEO Carlos Brito was not afraid of big acquisitions. However, his most notable large acquisitions (Anheuser-Busch and SABMiller) failed to add new beverage categories to the tired product portfolio while weighting it … Continue reading Carlos Brito Is On His Way Out as BUD CEO. Did BUD’s Board Try To Help Brito?

Boeing Needs to Wipe the Slate Clean of Its CEO and Board

Boeing Needs to Wipe the Slate Clean of Its CEO and Board

Boeing has a corporate governance problem. CEO Dave Calhoun has been a Boeing director since 2009 and CEO since January 2020. It strikes us as curious that Calhoun had no knowledge of the operational problems around the 737 Max aircraft that led to the two crashes that killed 346 people in October 2018 and March … Continue reading Boeing Needs to Wipe the Slate Clean of Its CEO and Board

McDonald’s: Cultural Rot Starts At The Top

McDonald’s: Cultural Rot Starts At The Top

The drama around former McDonald's (tkr: MCD) CEO Steve Easterbrook could have been avoided if the Board had been engaged. Similarly, the company's HR function failed. Self-preservation is to blame. Ironically, McDonald's Board is at risk of being purged and HR leadership has already turned over under new MCD CEO Chris Kempczinski. How is self-preservation … Continue reading McDonald’s: Cultural Rot Starts At The Top