Category: Fintech

Square’s Jack Dorsey – Technology’s Best CEO Value

Square’s Jack Dorsey – Technology’s Best CEO Value

Square’s Jack Dorsey – Tech’s Best Value Over Past 14 Months

We dipped into our CEORater database as we regularly do and ran a query to return the Technology stocks with the greatest stock price appreciation over the period January 3rd 2017 through February 23rd 2018.

We then took the Top 20 Technology Companies as measured by stock price appreciation during the period and asked the question: “Which of the 20 Technology CEOs were the best value in terms of CEO Compensation required to generate each percentage point of stock price appreciation?” For example, in the case of Mr. Dorsey at Square (tkr: SQ, Dorsey is also CEO at Twitter tkr: TWTR) who finished first on our list, for every $7 dollars of CEO Compensation the Company generated one percentage point of stock price appreciation.

Second on the list was Take-Two Interactive’s (tkr: TTWO) Strauss Zelnick at $183 of CEO Compensation for every percentage point of stock price appreciation generated. The table below details the Top 20 CEOs. Further, below the table each CEO name is linked to his/her CEORater profile page where additional detail may be found.

Top Value Tech CEOs Pic
Technology CEOs – Best Value Jan 3rd ’17 – Feb 23rd ’18. (Click to Expand View)
  1. Jack Dorsey, SQ
  2. Strauss Zelnick, TTWO
  3. Tobi Lütke, SHOP
  4. Lew Cirne, NEWR
  5. Jack McDonald, UPLD
  6. Michael D. Rumbolz, EVRI
  7. Matt Maloney, GRUB
  8. Guy Sella, SEDG
  9. Valentin P. Gapontsev, IPGP
  10. Martin Plaehn, CTRL
  11. Brian Halligan, HUBS
  12. Chip J. Paucek, TWOU
  13. Jayshree Ullal, ANET
  14. Vlad Shmunis, RNG
  15. Steven W. Streit, GDOT
  16. Kevin M. Sheehan, SGMS
  17. Philippe Courtot, QLYS
  18. Joey Levin, IAC
  19. Jen-Hsun Huang, NVDA
  20. Reed Hastings, NFLX

Apple Is Well-Positioned to Lead A Consumer-Driven Healthcare Revolution<span class="badge-status" style="background:red">Premium</span> 

Apple Is Well-Positioned to Lead A Consumer-Driven Healthcare RevolutionPremium 

Welcome to Apple Health Apple recently announced that this spring it will release an update to its iOS for iPhones and iPads that will include a new “Health Records” feature that will provide access to personal medical records covering allergies, conditions, immunizations, lab results, medications, procedures and vitals. Given the ubiquity of the iPhone we…

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We’ve Been Critical of Xerox Since 2012

We’ve Been Critical of Xerox Since 2012

We have been critical of Xerox’s (tkr: XRX) senior leadership since 2012 when I wrote a letter to former Xerox CEO Ursula Burns advocating a strategic M&A plan (read my letter here). We agree with Messrs. Icahn and Deason that XRX put itself up for sale. Listen to our recent CEORater Podcast on the subject: Ep. 114: We’ve Been On The Xerox Case Since 2012

Autonomous Teaser, Uber Data Breach, More M&A

Autonomous Teaser, Uber Data Breach, More M&A

Autonomous Teaser, Uber Data Breach, More M&A

In this edition of the CEORater Podcast we cover:

1.) Autonomous driving teaser..

2.) Perhaps Microsoft (MSFT) ought to acquire Anaplan and other SaaS/cloud Financial Management tools to create an upgrade glide path for Excel? We think so. Infor would do well to follow a similar M&A path.

3.) Uber the latest company to suffer a publicized data breach. We sound like a broken record regarding the subject of Cybersecurity.

4.) Meg Whitman steps down at HPE. IT Services and Technology-Enabled Services companies would be wise to acquire Enterprise Software companies. Such acquisitions would be margin accretive, EPS accretive, would bolster valuations and perhaps most importantly would begin to move the Services vendors out of the commodity services space and into a sector where they would own IP.

 

CEO Compensation Analysis: “Comp-to-Cap”

Gabelli

We at CEORater recently published a report analyzing executive compensation which you may access HERE  (should you prefer the Excel version email us at: sales@ceorater.com). We take a unique approach in that we measure CEO compensation as a percentage of market cap. In the future it is likely that we will measure CEO compensation against other metrics such as YTD total stock return as well as vs. peer group performance. We aim to incorporate these and other metrics into the CEORater platform in the not too distant future as part of a portfolio of self-service tools. For now, enjoy the list. By the way, you don’t want to be at the top of our “Comp to Cap” report.

 

Bitcoin Tsunami

Bitcoin

Wall Street Journal article: CME Group aims to launch futures contract by the end of the year, in big endorsement of digital currency

from WSJ: “Bitcoin is moving from the margins of the financial world closer to its center.

CME Group Inc., CME 0.78% the world’s biggest exchange group, said Tuesday it aims to launch a futures contract based on bitcoin by the end of the year. The plan, subject to regulatory approval, would be a big step forward in the evolution of the digital currency.

Futures are a way for traders to bet on whether the price of a commodity, such as oil or gold, will rise or fall. Introducing a U.S. futures contract based on bitcoin would enable Wall Street banks and trading firms to protect themselves against price swings in the digital currency. It could also provide retail investors with an easier way to trade bitcoin.

Bitcoin was conceived in 2008 by an anonymous creator known as Satoshi Nakamoto. It is a purely digital currency, or “cryptocurrency”—essentially, strings of ones and zeros flitting around in cyberspace—designed to act as an alternative to government-backed currencies.

Many officials and bankers around the world, including J.P. Morgan Chase Chief Executive James Dimon, have been reluctant to embrace bitcoin. Its reputation has been tarnished by an association with money laundering and other illicit activity, while volatility and uncertainty over its legal status have kept the digital currency trading in the shadows of global markets for years.

CME’s plan to bring bitcoin to the futures market offers a stamp of approval from a financial giant at a time when the digital currency’s supporters say it is gaining respectability.

“It is a legitimization of bitcoin as an asset class,” said Daniel Masters, chairman of the Global Advisors group of companies, which runs a bitcoin hedge fund and exchange-traded notes linked to digital currencies.

The move is nonetheless risky for CME, which could face embarrassment if the bitcoin market implodes, as some skeptics predict will eventually happen. There is no guarantee that its bitcoin initiative will succeed. Many new futures contracts introduced by exchanges fail to take off.

Still, CME’s plan sent the price of bitcoin surging. After the exchange’s announcement Tuesday, the digital currency’s price rose above $6,400 for the first time, up more than 4% for the day, according to CoinDesk. It has more than quintupled so far this year.

Listing bitcoin futures on CME or another U.S. exchange would make it easier to trade the digital currency by allowing market participants to bet on whether its price will fall, something that’s currently difficult to do.

Futures allow “long” investors, who think the price of a commodity will rise, to match their bets against “shorts,” who expect a price drop. Introducing bitcoin futures could help smooth out some of bitcoin’s wild price swings, traders say, because it would give bitcoin pessimists more opportunity to express their views in the marketplace.

“When you make the market more even-sided—to make it as easy to short as to go long—I think the biggest effect you get is a decrease in volatility,” said Mr. Masters, of Global Advisors.

The recent price run-up, along with dozens of launches of digital currency-focused hedge funds in the past year, has sparked interest from Wall Street. Goldman Sachs Group Inc. has said it is considering starting a trading operation for bitcoin and other cryptocurrencies.

The value of all bitcoins in existence recently surpassed $100 billion and now stands at $106.9 billion, according to coinmarketcap.com. By comparison, the market capitalization of Goldman Sachs is $93.8 billion.

Other big players remain skeptical. Mr. Dimon said in September that he viewed bitcoin as a “fraud” that “will eventually blow up.” South Korea and China are among the countries that have tightened regulations around digital currencies in recent months.

But most market participants say banks would be more likely to trade or make markets in bitcoin if a futures contract takes off. That’s because shorting bitcoin can help a financial institution insure against a price drop. A cryptocurrency trading desk at a bank could turn to the futures market when it wanted to reduce the risk of its bitcoin holdings.

Futures could also pave the way for retail investors to get more involved in the digital currency, especially after the Securities and Exchange Commission earlier this year rejected efforts to launch the first exchange-traded fund based on bitcoin.

Trading the virtual currency can currently be logistically tricky. Since U.S. brokerages generally don’t offer a way to trade digital currency, people who want to buy or sell it need to set up accounts directly with a bitcoin exchange. There are dozens of such exchanges around the world, many of them small and lightly regulated.

But if a major U.S. exchange launches futures tied to bitcoin, investing in the digital currency would become similar to trading commodities, with investors able to use popular retail brokerages.

Bitcoin futures could also become the basis for an ETF linked to the digital currency, in much the same way that the United States Oil Fund , the world’s largest crude oil ETF, is built out of oil futures rather than physical barrels of oil.

CME traces its history back to 1848, when the first futures markets formed in Chicago to allow farmers and grain buyers a way to trade agricultural commodities. It now runs a huge array of markets, from oil and gas futures to financial contracts tied to interest rates.

Tuesday’s announcement sets off a horse race between CME and its smaller crosstown rival, Cboe Global Markets Inc., to see which exchange operator can launch bitcoin futures first. Cboe said in August it was planning to launch bitcoin futures by the end of 2017 or early 2018, pending regulatory approvals. A Cboe spokeswoman declined to comment.

Both CME and Cboe are regulated by the Commodity Futures Trading Commission, which would need to sign off on the launch of any bitcoin futures contract.

The CFTC has lately been friendlier to bitcoin than the SEC. In July, the CFTC granted a startup called LedgerX approval to clear bitcoin options, making it the first U.S. federally regulated platform of its kind.”