Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today announced the nominees for its 2014 CEO of the Year award. Morningstar annually recognizes a chief executive who exhibits commendable corporate stewardship, demonstrates independent thinking, creates lasting value for shareholders, and has put his or her stamp on an industry.
The three nominees for this year’s award are:
- Gregory Henslee, O’Reilly Automotive Inc.
- Gail Kelly, Westpac Banking Corporation
- John Martin, Gilead Sciences Inc.
“Each year we look at chief executives’ track records of capital allocation decisions and how they’ve created shareholder value by establishing or enhancing the competitive advantages of their companies,” Michael Holt, head of equity and corporate credit research for Morningstar, said. “While a CEO’s longer-term accomplishments are important, we also evaluate moves made during the calendar year. Each of our three nominees leads a company that our analysts consider to have an economic moat and an Exemplary Stewardship Rating, our top rating based on our assessment of management’s stewardship practices.”
Morningstar’s Economic Moat™ rating is a proprietary measure of a company’s sustainable competitive advantages, and Morningstar assigns each company a rating of Wide, Narrow, or None. A company can derive an economic moat through five primary sources: Efficient Scale (a limited market where there is little incentive for new entrants), Network Effect (a situation where incremental customers add value for existing customers), Cost Advantage (allowing a company a greater profit margin and/or the ability to steal market share), Intangible Assets (e.g. patents or strong brands), and Switching Costs (making it costly in time and/or money for customers to switch providers).
Morningstar plans to announce its 2014 CEO of the Year award winner on Jan. 21, 2015 on CNBC’s “Nightly Business Report.”
Morningstar introduced its CEO of the Year award in January 2000. Winners are chosen by senior members of Morningstar’s equity analyst team based on their in-depth independent research.