Which bank CEOs deliver the best returns for shareholders?

Any football supporter will tell you that the team is usually only as good as the person who runs it. The same applies to investment banking. The CEO sets the agenda for the entire firm. It is a highly pressurized role that will culminate in their removal if the team they manage fails to perform. And the performance that ultimately matters for bank CEOs is to deliver returns to shareholders.

Which bank CEOs deliver the best returns for shareholders?
CAGR of market cap for length of tenure
Rank CEO Bank CEO tenure (years) Compound annual growth 2006 growth
1 Lloyd Blankfein Goldman Sachs 1 49.3% 49.3%
2 John Mack Morgan Stanley 1 44.1% 44.1%
3 Dick Fuld Lehman Brothers 12 31.5% 21.1%
4 Ossie Grubel Credit Suisse 3 27.3% 48.0%
5 Josef Ackermann Deutsche Bank 4 25.0% 30.2%
6 Stan O’Neal Merrill Lynch 4 23.7% 32.2%
7 Baudouin Prot BNP Paribas 3 23.6% 49.6%
8 Peter Wuffli UBS 3 20.5% 36.5%
9 Jimmy Cayne Bear Stearns 13 18.0% 45.3%
10 Daniel Bouton Société Générale 13 17.3% 46.5%
11 Stephen Green HSBC 1 15.6% 15.6%
12 John Varley Barclays 2 13.3% 36.5%
13 Fred Goodwin RBS 5 12.3% 28.5%
14 Rijkman Groenink ABN Amro 6 10.3% 22.9%
15 Jamie Dimon JPMorgan 2 9.9% 0.2%
16 Charles Prince Citigroup 3 3.0% 13.2%
Source: Euromoney, Bloomberg

The Champions League of investment banking

Is the banking boom sustainable?

Investment banks continued to ride high in 2006 on good fundamentals and the added boost of strong hedge fund and private equity activity, proprietary trading and continuing globalization.

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