The Best-Performing CEOs in the World

The knock on most CEOs is that their focus is too myopic--that they're fixated on achieving short-term goals to increase their pay. If you studied results produced over the long term, which leaders would truly show strong performance? HBR's ranking of the 100 best CEOs provides an answer. To compile our list, we examined how active CEOs of global public companies performed over their entire tenures. We took a scientific, objective approach, basing our evaluation on hard data, rather than on reputation or anecdote. For each executive, we looked at three metrics: the total industry-adjusted shareholder returns produced, the total country-adjusted shareholder returns, and the total increase in market capitalization. The CEOs who made the 2014 list have undeniably been effective. On average, the top 50 have delivered total shareholder returns of 1,350% during their time on the job. That translates into an annual return of 26.2%. Adjusting for industry effects, average total shareholder returns for the top 50 are 1,161%, and for country effects, 1,087%. But the results turned in by the #1 CEO on our list, Jeff Bezos, were especially impressive. Under his leadership, Amazon produced country-adjusted returns of 15,189% and industry-adjusted returns of 14,917% and grew its market capitalization by $140 billion. We also collected biographical and compensation data on the CEOs to see if we could identify what they had in common and whether there was any correlation between performance and pay. While the top 100 have each had unique journeys to success, there do seem to be two preferred pathways: Over a quarter of the CEOs have MBAs, and nearly as many studied engineering. But in some ways, Bezos's place at the top says it all: The best CEO in the long haul turned out to be one who frequently underperformed in the short term--while continuing to make big bets on the future.

• Executives
• Fixed income securities
• Employee performance management
• Executive compensation