“’Price is what you pay. Value is what you get’.” Warren Buffett
The market has spoken and determined the best value CEOs in the ASX200 in the first half of 2022. 115 of Australia’s leading super funds, investment managers and equities analysts scored the stocks they cover on MarketMeter’s investor sentiment platform. The scoring process mirrored their own stock selection and portfolio construction procedures and was undertaken as the economy was emerging from covid isolation but wrestling with continuing supply chain issues, global inflation and the impacts of the Ukraine / Russian war. Market darling online / IT company bosses were prominent, but also in the mix were CEOs of real estate, health care, industrials and infrastructure companies.
ASX 100 – TOP 10 CEOs
|3||REA||REA GROUP LTD|
|5||MQG||MACQUARIE GROUP LIMITED|
|10||ALL||ARISTOCRAT LEISURE LIMITED|
The picture is similar at the smaller end of the ASX 200, with the composition of the CEO league table in the ASX101-200 featuring online / IT companies as well as communications, resources, real estate and consumer discretionary companies.
ASX 101-200 – TOP 10 CEOs
|5||DHG||DOMAIN HOLDINGS AUSTRALIA LIMITED|
|6||AVZ||AVZ MINERALS LIMITED|
|7||FLT||FLIGHT CENTRE TRAVEL GROUP LIMITED|
|8||CTD||CORPORATE TRAVEL MANAGEMENT LIMITED|
|9||LTR||LIONTOWN RESOURCES LIMITED|
|10||BRG||BREVILLE GROUP LIMITED|
Now the companies led by these top CEOs don’t necessarily correlate with the companies that delivered the best total shareholder return for the first half of 2022, so just how were these scores and rankings determined? MarketMeter’s interactive market insights platform captures quantitative and qualitative data from domestic and offshore institutional investors via its stock scoring site. Portfolio managers and investment analysts score companies out of 10 across Management, Strategy, Financial, ESG and Shareholder Engagement categories and have the option to provide qualitative feedback to the companies they are rating.
When it comes to scoring a company on the effectiveness of its CEO, investors are asked to consider key areas of a CEO’s performance; primarily earnings quality, growth prospects, clarity and strength of strategy, and shareholder value focus. Succession planning and credibility are also key issues when evaluating a CEO.
Approximately 90,000 data points were captured on MarketMeter’s platform in the first half of 2022. The quality and depth of the data pool is underpinned by MarketMeter’s partnerships with Australia’s leading super funds whose investment managers provide stock scores as part of their responsible investment reporting processes. Corporate subscribers also contribute to the data sample with their key shareholders providing performance feedback to board and management teams. For the investors doing the scoring, MarketMeter’s interactive analytics platform is a barometer for relative peer group sentiment – a stock screening tool not available elsewhere.
In addition to being used by Australia’s super fund industry, MarketMeter’s data is used by the Australasian Investor Relations Association (AIRA) to determine its annual Investor Relations Best Practice Awards, as well as by the Australian Shareholders’ Association (ASA) for their annual awards. The league tables for the investor relations industry are published on the AIRA website.
MarketMeter is the interactive market insights platform that measures and benchmarks investor perceptions of Australian and New Zealand listed companies. It is a powerful performance and risk management tool for boards, management and investor relations teams. Corporate subscribers have the power to interrogate this data for meaningful and actionable insights. https://www.marketmeter.com.au/contact-us.html
MarketMeter’s purpose is to provide listed companies with aggregated, anonymised investment market views in order to highlight areas of risk and promote corporate best practice. MarketMeter shares anonymised data with the Australasian Investor Relations Association (AIRA) to determine its annual IR Best Practice Awards, as well as with APRA-regulated super funds for their internal valuation frameworks and The Behavioural Insights Team to explore ESG themes.
Institutional investors and brokers can contribute their stock scores post-reporting season every year: https://stockscores.marketmeter.com.au/signup
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