Daily Ticker

Top CEOs Ranked By Their (Lousy) Stock Performance

Corporate America is in the midst of an obsession with "shareholder value."

This narrow measure of company performance holds that what's good for a company's stock price is also what's good for the company and its customers and employees. So, for better and worse, many of today's CEOs are judged primarily by their stock prices.

Capitalizing on this theme, Bloomberg has put together a list of CEO "underachievers"--big company CEOs whose stocks have done the worst relative to the broader market since the beginning of each CEO's tenure.

Meg Whitman of Hewlett-Packard (HPQ) sits atop the list, with HP's stock having underperformed by a startling 30 percentage points since she took the job.

James Gorman of Morgan Stanley (MS) and Brian Moynihan of Bank of America (BAC) hold the 5th and 6th slots, with both banks having struggled in the past couple of years.

And, not surprisingly, the staggeringly well-compensated CEO of Occidental Petroleum (OXY), Stephen Chazen, owns a place in the top 10.

Related: $50M for Getting Fired? OXY's Ray Irani Takes C-Level Excess to New Heights

Although some CEOs certainly deserve a place on an "underachiever" list, the problem with judging CEOs this way is that it encourages CEOs to make decisions that might pump up stock prices in the near-term but actually hurt them over the long-term.

At most companies, for example, firing employees and cutting research and development expenses will increase this year's earnings per share--something that Wall Street generally applauds.

But firing employees and cutting research and development spending this year may also depress growth two or three years from now, when the products that this extra investment might have produced would finally have hit the market. Thus, in the interests of pleasing impatient short-term shareholders, the CEOs might have shortchanged the long term.

Tell Us What You Think!

Got a topic you’d like covered? Have a guest you’d like to see interviewed? Send an email to: thedailyticker@yahoo.com.

You can also look us up on Twitter and Facebook.

More from the Daily Ticker:

Can Glenn Hubbard Put the Thrifty Back Into the Economy?

The Five Biggest College Myths

Tesla Pays Back Washington: Do You Know Anyone Who Drives One?

Editors' Picks

Subscribe and RSS


How to subscribe

Roll over each section to subscribe using Add to My Yahoo or RSS Feed feeds.

Yahoo News offers dozens of RSS feeds you can read on My Yahoo or using a third-party RSS news reader software. Click here to find out more about RSS and how you can use it with Yahoo News.
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
to view quotes in your portfolios.