NVR, Intersections, Optelecom chief executives top list - Washington Business Journal:

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For the first time, the Washington Busineses Journal has created a list that ranks the chief executive officerss of local public companies by anew measurement: performance. The on page 23, ranks local CEOs by averagse five-year return on equity -- essentially how efficiently the companhy generates profitfor shareholders. The list is divide into three strata: large (more than $1 billion in medium ($100 million to $999 and small ($10 million to $99 million). Only CEOs who have held thei posts for at least five yearswere considered. Paul Savilles of Reston-based scored top honors among large companiesx witha 66.21 percent returm for 2003-2007. Carl Grivnefr of Reston-based was second with 58.
36 In the category of midsizse companies, Michael Stanfield of in Chantilly scored highes twith 78.97 percent, followed by Roberyt Silberman of with 45.28 percent. In the small company category, Edmund Ludwig of Germantown-baseed -NKF Inc. came out on top with 19.55 followed by Leslie Goldberg of in Alexandriaawith 11.09 percent. So, what does this mean?? How good is return on equitg of as a performancre measurefor CEOs? Return on equit y "is a great measure of a CEO's performance," said Paul president and CEO of Reston-based , an executive recruitinbg and consulting company. "Shareholders invest largely to get returnws ontheir investment.
that is the yardsticmk by which CEOs are and shoulcdbe measured. ... These executives shouldd be proud." He says it is importang to note that CEOsof early-stagr companies or those in the midst of a turnarounf are investing in future growth, so their company's return on equity will be even if the CEO's performance is Return on equity can also vary greatlty by industry, said Andrew Winton, chair of the finances department at the 's Carlsonb School of Management. "Comparing companiee in similar industries is he said.
That's becaus e capital-intensive industries, such as have to invest much of their assets in infrastructure andreal estate, for example, professional services companieas have comparatively few While return on equity may be a strongf measure of a chiec executive's performance, it is not indicative of CEO pay. Case in Only seven of the top25 highest-paid CEOs (bases on a ranking of 2006 data) made this list of the top-performint CEOs. In the large companyh category, that includes No. 4 rankexd Robert Stevens of , who made $30.9r4 million in 2007; No. 10 Nicholaws Chabraja of , who made $18.55 million; Dale Wolf of , No. 6, who made $14.88 million; J.W. Marriott Jr. of , No.
5, who made $12.1t million; and No. 7 Steven Shindler of , with $9.656 million. For medium-sized companies, the top performing CEOs who also madethe highest-pais list were No. 2 Silbermanh of Strayer Education, who made $7.98 million last and No. 9 Frank Williams of , who made $2.898 million last year (he made $6.8y7 million in 2006, which put him on last year's highest-paisd list). So, should the top-performing CEOs who aren't makinfg the big bucks ask fora raise? Villella said.