This is a challenging time to be a CEO. Around the world, economic
growth is slow, political uncertainty undermines attempts to develop
long-term plans, and shareholder activists have become powerful critics
of business leaders. These forces help explain why the C-suite sometimes
appears to have a revolving door. Is it any wonder so many CEOs focus
on the short term? Against this backdrop, it’s heartening to see some
top executives implement long-term strategies and establish lasting
track records. HBR’s ranking of the world’s 100 best CEOs is intended to
highlight these individuals. It’s based on performance on both
financial and ESG measures over leaders’ entire time in office—which
comes to 17 years, on average, for the CEOs on the 2016 list. This group
has delivered impressive results, producing an overall financial return
of 2,091%, on average. But as the variety of the people on the list
shows, there is no single path to success. Consider the three men at the
top of the ranking: Lars Rebien Sørensen studied forestry before he
joined Novo Nordisk more than 30 years ago and climbed through various
operational roles to become CEO. Martin Sorrell earned an MBA and spent a
decade in the ad industry before buying a stake in a shell company and
building WPP—now the world’s largest marketing-services firm—through a
series of acquisitions. Pablo Isla studied law and worked in Spain’s
treasury ministry before taking the helm of the fast-fashion retailer
Inditex. In this issue we feature an interview HBR editor Adi Ignatius
did with the three leaders in late summer, in which they explore what it
takes to fight short-termism and lead with a long view in today’s
turbulent environment. [ABSTRACT FROM AUTHOR]