Harvard Business Review, January-February 2013
For years, people have bemoaned executives’ zealous focus on short-term results, which often leads CEOs to make moves that undermine their firms’ long-term prospects and, some say, act irresponsibly. But all the talk won’t change anything if the business world doesn’t adopt a new way of measuring performance. Three professors from France’s Insead believe they have the answer: an innovative scorecard that evaluates CEOs on the basis of the results they delivered over their entire tenures in office. It incorporates three metrics: industry-adjusted shareholder returns, country-adjusted shareholder returns, and increase in market capitalization over that time frame.
The Harvard Business Review review recognized José Antonio Fernández Carbajal as the top CEO in Mexico. Fernández Carbajal is the head of FEMSA, the 5th firm on Expansión’s list of the largest Mexican companies.