Harvard Business Review

APRIL 16, 2015

” A quarter century later, not much seems to have changed: fewer than five out of the 100 CEOs on HBR’s 2014 list of best-performing CEOs even mention “return on capital” on their official biography — and none of those five lead companies listed in the Dow Jones Industrial Average (DJIA) or in the EuroStoxx50.

CEO 8

CEO ROIC Cost of Capital Merton 8

Harvard Business Review

OCTOBER 3, 2011

This blog post is part of the HBR Online Forum The CEO's Role in Fixing the System. Most CEOs, as well as some of the other contributors to this forum, appear to have a false sense of what creating shareholder value means. It is now in vogue to dismiss the idea that creating shareholder value should be a CEO's guiding objective.

Short-term 11

Short-term Long-term Price CEO 11

Harvard Business Review

JUNE 27, 2012

Unlike dinosaurs, which had no conscious way to adapt to rapid changes around them, companies and CEOs have a choice. real revenue and profit growth and earning their cost of capital has steadily declined. Stock markets might seem capricious, but in the long term, shareholder returns closely track operational performance. "We

Creativity 14

Creativity Long-term Kotter Cost of Capital 14

Harvard Business Review

JUNE 18, 2015

” PE firms typically take three types of value increasing actions — financial engineering, governance engineering, and operational engineering. In operational engineering, PE firms develop industry and operating expertise that they bring to bear to add value to their portfolio companies.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

NOVEMBER 20, 2013

Companies run by decisive CEOs rack up more economic profit — what’s left of operating profit after the cost of capital is subtracted – than competitors do. Whatever the degree of change required at your company, make it. Returns to shareholders of reallocating firms are strong.

Strategy 8

Strategy McKinsey Strategic Planning Cost of Capital 8

Harvard Business Review

APRIL 26, 2017

As JPMorgan Chase’s CEO, Jamie Dimon, warned in a June 2015 letter to the bank’s shareholders, “Silicon Valley is coming.” Banks’ cost of capital is typically 50 basis points or less. This amounts to putting a toe in the water, while keeping current operations relatively separate and pristine.

Banking 11

Banking Stage-Gate Credit Scoring Competitive Advantage 11

Harvard Business Review

MARCH 28, 2016

As a result, family equity can come at a very low cost of capital, where businesses can meet the annual needs of their shareholders without having to worry about paying back the principal. ” There is often a personal connection between the family and the communities in which it operates; reputations matter to families.

Long-term 8

Long-term Short-term Reputation Incentives 8