Bogotá — Bloomberg Linea publishes its list of CEOs that achieved the best returns for their shareholders among the largest listed companies in Latin America, in a challenging context for business leaders in the region after the pandemic and the impact it has left on global markets, forcing them to assume a new strategic leadership approach.
Post-pandemic, CEOs in the region have had to face new economic challenges such as the crisis in the logistics chain, high inflation and constricted access to credit due to high interest rates, which forced them to rethink their strategies and seek efficiency in the midst of difficulties.
CHECK OUT THE TOP 15 CEOs
According to the EY CEO Outlook Pulse Survey 2023, among global CEOs’ top concerns this year are the risk of the return of pandemic-related disruptions (such as lockdowns, supply chain disruptions, etc.) and the risks posed by uncertain monetary policy (both flagged by 32% of respondents).
This is followed by rising raw materials prices and inflation (31%).
In the midst of this context, Bloomberg Línea looked at the top CEOs in Latin America among 87 companies (88 CEOs), with at least one active CEO, listed on the stock exchange.
To do so, it took into account indicators such as the annual rate of return, which refers to the total returns on an investment during a specific period, considering criteria such as price and reinvestment rate.
Companies from Brazil (38 ), Mexico (21), Chile (11), Argentina (5), Colombia (5), Peru (4), Panama (2) and Uruguay (1) were considered. Private companies were not taken into account.
The companies are part of the MSCI Emerging Markets Latin America Index and the S&P Latin America 35 ADR Index. Companies with Latin American capital that are listed on US stock exchanges were also considered.
The list is the result of this analysis that settled on the top 15 CEOs in the region.
The top of the list is dominated mainly by CEOs from the finance and retail sectors, with four selected from each sector. These sectors have been particularly active amid the digitization of services that has led more people to access digital payments and e-commerce, boosting the performance of these companies.
They are followed by energy (3), logistics (2) and technology (2) companies.
One of the main questions raised by the list is that, among all the companies analyzed, none is led by a woman.
Some names stand out in the list, such as Brazilian Roberto Monteiro, CEO of PRIO (formerly PetroRio), who in 2022 completed the acquisition of Dommo (ex-OGX) for $180 million and since then its shares on the B3 index have practically doubled to around 40 reais ($8.31) each.
In Brazil, the CEO of Magazine Luiza, Frederico Trajano, also stands out. In the midst of increased competition, he has focused on efficiency, strategic acquisitions and investments in technology and logistics.
In Mexico, the CEO of Arca Continental, Arturo Gutiérrez Hernández, has faced the pressures caused by the increase in raw materials prices linked to the pandemic, achieving profitability thanks to pricing strategies and savings.
And the CEO of Promotora y Operadora de Infraestructura, David Peñaloza Alanís, who has nearly tripled the number of transportation infrastructure projects managed, among others.
From Argentina, the list includes the founder and CEO of MercadoLibre, Marcos Galperin, who has led the e-commerce giant to a valuation of more than $50 billion, and the CEO of Globant, Martín Migoya, who led the company in the first quarter of this year to a 17.7% year-on-year growth in turnover to $472.4 million.
Also on the list are Fabrizio Barderi, CEO of Enel Chile, and Marías Videla, CEO of Cencosud, while the CEO of Grupo Sura, Gonzalo Pérez, is also on the list for Colombia.
The complete list of the evaluation of 88 CEOs
Of the 87 companies that met the requirements of our methodology, only 88 CEOs made the cut, and of them here are the 15 best performing CEOs in the region. There are 88 CEOs, but 87 companies, this is explained by the fact that Televisa has two CEOs.
Methodology
- A list of 88 companies with at least one active CEO listed on the stock exchange. Private companies were not considered. The companies are part of the MSCI Emerging Markets Latin America Index and the S&P Latin America 35 ADR Index. In addition, companies with Latin American capital listed on US stock exchanges were considered, based on their market capitalization exceeding $2 billion.
- Number of companies considered: 87. Number of CEOs: 88. Companies from Brazil (38), Mexico (21), Chile (11), Argentina (5), Colombia (5), Peru (4), Panama (2), and Uruguay (1) were evaluated.
- Of the 87 companies that met the requirements of our methodology, only 88 CEOs made the cut, and of them here are the 15 best performing CEOs in the region. There are 88 CEOs, but 87 companies, this is explained by the fact that Televisa has two CEOs.
- CEOs with at least one year in the position were considered.
- %TRA: Annualized total return considers dividends reinvested in value taken from the Bloomberg terminal. The calculation considers values in US dollars, not in the local currency.
- Definition of TRA calculation from the CEOs’ start date until May 31, 2023. If the start date was not a business day, the immediate previous date was taken into account.
- The calculation considers values in US dollars, not the local currency of each country where the company operates and is headquartered.
- The TRA measurement was taken from the start of the company’s listing on the stock exchange. In other words, if the CEO was there before, the measurement is taken from the moment the company went public.
- The return of the main stock index where the company is listed was estimated using the Bloomberg Terminal, considering the same period for which the TRA was calculated. If the company was not listed on the local stock exchange, the performance on the US stock exchange was used.
- Information about the CEO’s start date was taken from the Bloomberg terminal, verified in official sources, official information from local stock exchanges, and corporate websites.
- In the measurement, solely as informational and contextual data, the performance of the stock exchange where the company is listed is known to determine if it was above or below the public companies in that index.
- As informational and contextual data, it is noted if there are women on the board of directors or management board of the company where the CEO is located. Their names and the proportion of women compared to the total size of the board are recorded. This does not influence the CEO measurement.
- As informative and contextual data, it is noted if the CEO is part of the management board or board of directors of the company. This also does not influence the executive’s measurement.