CHAPTER 2Creating a Leadership Capital Index
The valuation of any firm improves with an accurate view of its leadership—but such a thing is hard to come by. However, it is now possible to construct an index to assess a company’s leadership capital, or quality of leadership. This chapter, building on studies both of how investors currently assess leadership and of leadership itself, recommends a leadership capital index that investors and others can use to realize the market value of leadership.
How Do Investors Assess Quality of Leadership?
Some investors focus on financial returns or intangibles (or both) and ignore leadership altogether. Wise long-term investors recognize that leadership matters. A colleague reports working in an energy company ...