A star CEO makes all the difference
Performance in the corner office has made these companies into leaders.
We do not talk enough about execution. It is the mother's milk of profits, and in an era when ETFs are the preferred method of trading, the whole notion of long-term management performance gets lost in the shuffle.
And then you will get a couple of days when management's great work just shines through. Wednesday was one of those days. Just think about how many terrific CEOs and their amazing deeds we heard from or read about. Just think about how hard these people are working for you and how they are delivering for you.
We know that Ken Powell is delivering a level of performance at General Mills (GIS) that is astounding. Think about all of the obstacles that he's overcome: higher commodity prices, a sluggish consumer, endless buy-one-get-one couponing. And what has he done? He's given you nothing less than consistent sleep-at-night earnings reports like the one we got this morning, endless dividend increases and tremendous share-take. Powell is everything you can ask of a CEO.
Or how about Stuart Miller at Lennar (LEN)? It's not easy to follow the towering legacy of Stuart's dad, Leonard. But Stuart's late father has to be smiling somewhere about what this executive has done in the toughest housing market since the Depression. His beautiful quarter shows that he's building more homes, making more money per home and accumulating a land bank that will drive earnings for years and years to come.
Then there's Laura Alber, the remarkable CEO of Williams-Sonoma (WSM), who has steered this high-end housewares company onto perhaps the best growth path of anyone in the industry. This multi-cylinder company, which includes Pottery Barn and West Elm, is hitting on every one of them. The expectations were so high here, and she crushed them. I think we are in the early innings of the growth for Williams-Sonoma, as Alber has taken a company with electric merchandise but a stodgy reputation and turned it into a high-performance vehicle.
Then there is Al Walker, the quiet executive behind Anadarko (APC) who had to follow in the huge footsteps of the towering Jim Hackett, and who continues that exploration-and-production company's reputation as being the best wildcatter in the world. This announcement of a gigantic new find in the Gulf of Mexico is breathtaking and shows there's still plenty of oil left if you know where to look for it.
Finally, there is Greg Wasson, the CEO behind the remarkable renaissance at Walgreen (WAG), who is not only reinventing the drugstore format but who just inked an amazing deal with AmerisourceBergen (ABC) that raises estimates for the company while cutting prices for generics for the consumers.
That's incredible. No wonder we have had multiple upgrades of the company's stock since the announcement of this breathtaking transaction. It's totally transformational and comes right on the heels of what now looks like a brilliant merger with Alliance Boots, a deal that, candidly, I questioned, and I now admit I questioned incorrectly.
Sure, you can keep buying ETFs. Yes you can say that sector is all that matters. But these fabulous executives are delivering amazing performance and should be celebrated every time we think about the so-called "big issues" such as Cyprus, the Fed or the budget deficit. They have their eye on the ball -- don't take your eye off of them just because of European woes or Fed worries. You are liable to miss a big fat pitch that you can hit right into the upper deck.
Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and has no positions in stocks mentioned.
More from TheStreet.com
"""Think about all of the obstacles that HE'S overcome"""
yes, it's all about the CEO. the large number of regular people working in every company have NOTHING to do with it.
a smart CEO lets the people do what they know needs to get done. he doesn't get in the way, and provides the tools the people need to do their jobs affectively
Has the Sarge /Taxi Boy morphed into a new name ?
Don't see him - just the usual suspects
Is there any truth to the claim that silver supply is very low due to Apple/others use it for their products ?
I haven't researched it but you hear these claims - makes me wonder
If employees are confident in the CEO and his leadership abilities, if they buy into his vision for the future and his path to get there, morale stays up, productivity increases and people conduct themselves with a purpose that is generally beneficial to those around them.... Pretty much the opposite of what happens when Obama is in charge.
It all starts at the top. If the top guy is committed the rest will follow. Good leadership I believe begins with commitment. If the top guy builds a big tent and everyone feels welcome survival is a possibility. If he demonizes half his employees nothing will get accomplished. Get it?
Hmm- I sense the presence of a lurking loony, lefty about ?
A sudden presence of a loss , losing, a certain ineptitude, a dissatisfaction with life, an envy of successful folks,
Getting stronger -------
4 the Love of OTHERS Money
Come out , come out , wherever you are ---
They fell from the stars---
California, they say is the name of their star !
Evil - you know both of your posts are speaking in a wide generality, of course ?
I think the best companies , the ones you guys invest in , promote from within, recognize talent and promote.
When you describe corp. America as really running America, to a degree , I agree with you . some , even many, but not most . For example, GE is a perfect example of a company running America, since you brought it up.
Obam'as number one company, owns this rag , NBC , MSNBC , etc , etc , etc. They pimp Obuma 24/7/365 - kill anything conservative and in return GE gets to pay zero corporate taxes some years and really reduced taxes other years .
Is that a good example ?
uhh moron - I get that comprehension is not your thing . Better to rant over successful people earning it, however trying reading - lets' see----
Hey, 3 posts down !
You can count to three , correct ?
Surprise -- I DID feel a lurking sense of futility, doom , disaster , FAILURE - Knew there was a lefty , douche bag cretin somewhere nearby and surprise ---
VUX face shows up !
LOL @ U
Hearing lots of talk about Silver ?
big demand due to electronics , blah , blah.
I won't buy any (or gold) but just askin---
Hey did I miss anything ?
Lets see -- the usual evil, rich bashing, moved onto CEO's
YES , every CEO is a huge waste of talent , money, complete waste.
If ONLY they gave one of you dolts, the reins !
You people have no idea what a real CEO actually DOES.
It's incredible the naïveté, the limited vision, the immaturity.
Let me see if I have this right -- ALL the successful companies that you cretins invest in , follow , lap up the quarterly numbers , they are run by the average workers ? Not the CEO's ?
The bad companies , losers, they are run by the CEO'S ?
MY GOD what stupidity !!!
Re ; Kramer - We ALL know Kramer a useful idiot. The monkey from the LA times selected as many winners as Kramer did. No one takes him seriously but really the DAILY bashing , teeth grinding , ranting by some cretins on here is incredible !
Why , if not from the rage of losing in life , underachieving, a jealous rage, what ELSE could it be ?
Why hate on an obvious idiot ? Because he's a successful idiot ?
Since you all read his sheet , follow his every move , recite his quotes from 3 years ago, hold his every quote accountable -- doesn't that make YOU equal idiots ?
If he's such a dolt , WHY hang on his every word ?
LOL (ooops - sorry again)
We are having a follow up to yesterday's late afternoon selloff, nothing more, nothing less...Manipulators tend to do this and the goal of course is to drop this market triple digits today...Just be careful...All we can do is try to minimize the damage...We understand it is still early but things do not look good down here...Housing numbers were positive but good news are irrelevant when crooks take over things....More a little later.
Let's get something Straight.....9 out 10 CEOs are NOT....And I will repeat NOT !!
Worth their SALT...
Particularily in American Companies, They don't overcome many of the problems they are faced with and they have a battery of people UNDERNEATH them to accomplish, clearing up those problems..
They are way overpaid by MOST World standards, in the multiples of hundreds of times, of what their lower production workers are making that actually produce and keep the company running..
If the workers don't produce, normally you can find fault in the lower and mid-management operations of doing business...Usually Mid-management that are way over their heads..
It's not a Union or non-Union thing when Companies fail....It falls back on upper management and the CEO, along with the Boards that allow it to happen..
The Strangest part....Is they are rewarded FOR BAD BEHAVIOR...Only in America and very few other places;...Do they get great packages and "golden parachutes" for doing a "bad job"...
And then they waltz away to usually start again all over...With a handsome agreement to come on board somewhere else....
I have lived with one CEO, have known a few others and been involved with a lot of upper and middle management....There are a plenty of Good ones....But unfortunately there are more Bad ones....That are not " WORTH THEIR SALT ."
Ya I've experienced the difference in both bad and good bosses. I would say the general pattern is original founder of a business is a good boss, he remembers what it was like before success but is very driven and motivated. If you can work for a 1st generation business owner you will find it to be a positive experience. 2nd generation usually can run the company well enough but they have that sense of entitlement and start to view people as a means to their ends. 3rd generation tends to be as worthless as they come. The problem with Corporate America is that it appears to be aristocracy that runs these big companies and really the government too. So it appears that performance does not factor into compensation these days, just who owes who the biggest favor.
So if I vote for this bill you'll put me on the board for 5 years making what????
Strangely I remember well the Salt comparison of the Legions....
In that part of the World, Salt, wheat, spices and in general other commodities were of value..
Gold and Jewels were mosly important to the Aristocracy or anyone that could steal it...
I'm NOT on HERE to BASH Cramer, ALL CEOs, nor Obama.....
There are plenty of "good" CEOs,,,But most are way overpaid...IMO.
The Salt comparisom applies to FARM ANIMALS, also...Especially if you have Livestock that is "not gaining weight" or producing...Carrying their weght so to speak...
Cramer "can't bash" them too often, because he has to interview and talk to them often, and then in many cases support their Companies....Doing HIS job...
Unfortunately "MOST FOUNDERS" don't run their Companies like they use to, MANY are dead;
Companies go out and hire "hatchet weilders" or the latest and greatest, high paid smucks SOMETIMES...
It takes away the sentimentality...And some Founders have gotten old, turn the operations over to their Children or someone else they have "groomed"....ie; Warren Buffet and Charlie Munger..
Many have a lot of second thoughts about leaving their Babies or Berks.??
We all know of Good CEOs and Managers...They normally do make for a well run Company, and usually a "Good investment."
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.