Does Management Matter?

Approximately one year ago, Yahoo hired Marissa Mayer to lead the company after a series of failed efforts to improve operating results. During the last 12 months shareholder value has nearly doubled, increasing by approximately $15 billion.

In September 2006, Ford hired Alan Mulally to lead the company at a time when the Detroit based auto companies were heading toward bankruptcy. Over the last five years, Ford shareholders, unlike their counterparts at GM and Chrysler, avoided bankruptcy and are enjoying a current total share value of approximately $66 billion.

All comments and suggestions are welcome.

Walter J. Kirchberger, CFA