The Graziadio Business Review published a newly released 2nd annual report “CEO Performance of 100 of Southern California’s Largest Companies” by Patrick Furtaw, Steve Chopp, and John K. Paglia, PhD. This report is presented by SCCO International in association with Pepperdine University’s Graziadio School of Business and the Graziadio Business Review.
In the article, the authors discuss their research concerning Southern California’s 100 largest public businesses and the performance of their CEOs. In order to determine who was successful or who was “winning,” the authors measured the CEOs’ performance with economic profit, which is a “measure of true value creation that takes into consideration the profits a company makes over and above the level of investors’ required returns on capital invested by the company.” One interesting finding was in 2011 when many companies showed strong profitability, 58 out of the 100 CEOs had a positive economic profits, while the remaining 42 CEOs earned “returns below their cost capital” and resulted in negative economic profits.
To find out why the 58 CEOs performed better than the other 42, please click here to read the full GBR article, “CEO Performance of 100 of Southern California’s Largest Companies.”
Patrick Furtaw is a Partner of SCCO International, based in Los Angeles. He has more than 15 years of experience advising senior executives on business portfolio strategy and change management processes across a broad set of industries. He is an expert in the field of value realization with a focus on market price strategies and sales management. Patrick is also a member of Pepperdine’s Crest Advisory Board. Patrick can be reached at pfurtaw@scco.com.
Steve Chopp is Senior Advisor to SCCO International and an adjunct professor at Pepperdine University’s Graziadio School of Business where he teaches courses on valuation and M&A. His background includes senior roles in corporate and consulting focused on helping companies drive sustainable improvements in long-term value. Steve may be reached at schopp@scco.com.
John K. Paglia, PhD is an associate professor of finance at Pepperdine University where he teaches corporate finance, valuation, and capital markets classes; and also directs the Pepperdine Private Capital Markets Project. An award-winning researcher, he has been quoted in The Wall Street Journal, Businessweek and on CNBC, as well as many other outlets. John may be reached at jpaglia@pepperdine.edu.
