January 19, 2021

Spanish Pablo Isla repeats as the best executive in the world, according to Harvard Business Review | Economy

Spanish Pablo Isla repeats as the best executive in the world, according to Harvard Business Review | Economy



Pablo Isla has been chosen for second consecutive Year as the best executive president in the world for the prestigious publication Harvard Business Review. The classification analyzes the performance of 870 companies around the world. It compares its economic achievements and monitors its social and environmental commitments. The podium of the classification is completed by the American entrepreneur Jensen Huang, first executive of the Nvidia technology, and Bernard Arnault, president of the French luxury company LVMH.

The difficulty to enter and remain in the ranking makes this classification one of the most demanding and respected by the business world. Jeff Bezos (Amazon) was chosen in another edition as the best executive in the world and, nevertheless, this year he appears in 68th place.

After hearing the news, Isla said that this distinction has been possible thanks to the work of all the people who are part of Inditex. In addition, it has highlighted the relevant weight of the aspects of sustainability and social action that this recognition measures.

Two other Spanish managers slip into the top 100 of the classification. These are Florentino Pérez (ACS), ranked 24, and Ignacio Sánchez Galán (Iberdrola), ranked 36.

US companies dominate the ranking, with 49 seats out of the total. France is the next country with the most representatives, with nine seats in total. China and Japan have six and five representatives, respectively. Spain, Belgium and Canada appear with four representatives.

Very elaborate methodology

To select the candidates, a team of experts and academics selects the companies based on the S & P Global 1200 index at the end of 2017, an index that includes 70% of the world market capitalization and companies from all over the world are represented.

They identify the CEOs of each company, but to ensure that they have a sufficient historical perspective, those who have assumed this responsibility less than two years ago are excluded. Those that have been convicted or prosecuted are also deleted. In the end, 881 executives from 870 companies located in 29 countries were analyzed. With this list already screened, the economic evolution of the company is analyzed from the arrival of the CEO and until April 30, 2018.

Three metrics are applied to measure the financial evolution under each president's mandate: the return to the shareholder adjusted by country (including reinvested dividends), which compensates any increase in the return that was exclusively attributable to the improvement of the local stock exchange. The return to the shareholder adjusted by sector (including reinvested dividends), which compensates for any increase in individual fortunes in the industry; and change in capitalization (adjusted for dividends, problems with the share or repurchase of shares) calculated in dollars adjusted for inflation.

From these data, Harvard raises a list from the 1-best president- to 881 -perior-, for each of these financial metrics and an average of the three lists is made to obtain a general financial ranking. Apart from the financial aspect, the evolution of non-financial aspects is also analyzed (at this point they come to Sustainanalytics, which internationally measures aspects such as the environment, social responsibility and governance) and an indicator called CRSHub, which collects and normalizes data from nine analytical firms. Afterwards, a final grade is obtained, in which 80% of the peso is the financial part and the non-economic aspects, another 10% respectively.

Only 3% of women in the top 100

Very few women are executives in large companies. In Spain, only two IBEX 35 companies are run by women. These are María Dolores Dancausa (Bankinter) and Ana Patricia Botín (Banco Santander). Only three women appear in the top 100 of the ranking of Harvard Business Review. They are Marillyn Hewson (Lockeed Martin), who is ranked 29, Debra Cafaro (Sales), at 56, and Nancy McKinstry (Wolters Kluver), who is ranked 76.

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