Founder CEOs Generate Greater Alpha
We analyzed Technology Sector CEOs within our CEORater universe. Founder CEOs had a MEAN AlphaScore of 86. Non-Founder CEOs had a MEAN AlphaScore of 54.
CEORater’s AlphaScore is a blended metric designed to balance the total magnitude of outperformance, with the consistency of that outperformance. It is calculated in two steps:
Percentile Ranking: Each CEO is ranked against all other CEOs on two key metrics:
The percentile rank of their Total Stock Return vs. the QQQ’s Total Return over the same period.
The percentile rank of their Average Annual Total Stock Return vs. the QQQ’s Total Return over the same period (see our full methodologies HERE).
AlphaScore is the average of these two percentile ranks, resulting in a single, comprehensive score from 0 to 100. This methodology ensures that the AlphaScore rewards both long-term value creation and the year-over-year skill required to outperform the market.
The results are in the image below. You may access the PDF HERE and the Excel version HERE.
