CEO Q - The CEO Quarterly Magazine - Most Respected CEOs Edition by CEO Magazine

Content P06 - How to Evaluate a CEO? The Top 20 CEO Questions P10 - How to Evaluate the Board? The Board of Directors Scorecard P12 - Increasing Your Company’s Future Value An Interview with Leif Klingborg - Author of K-concept P16 - CEO Awards 2010 - Most Respected CEOs CEO Profiles • Carlos Ghosn - CEO of Nissan-Renault • Christopher Conner - CEO of Sherwin-Williams • David Blair - CEO of Catalyst Health Solutions • David Simon - CEO of Simon Property Group • Eric Schmidt - CEO of Google Inc • Jeff Joerres CEO of Manpower Inc • John Wren - CEO of Omnicom Group • Joseph Saunders - CEO of Visa Inc • John Stumpf - CEO Wells Fargo & Company • Matt Rubel - CEO of Collective Brands • Michael Dan - CEO of Brinks Inc • Mike Morris - CEO American Electric Power • Muhammad Yunus - CEO Grameen Bank • Paul Diaz - CEO of Kindred Healthcare • Robert Dutkowsky - CEO of Tech Data Corporation • Steve Jobs CEO of Apple Inc • Timothy Manganello - CEO of BorgWarner Inc • Tony Earley - CEO of DTE Energy P64 - CEO Awards 2010 - CEO Lessons Lessons from the Most Respected CEOs

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Editor’s Letter Welcome to the CEO Q Magazine CEO Quarterly is a global executive magazine. Our mission is to encourage management best practices research and dissemination. We pursue this mission by publishing the work of top management experts in a format targeting business leaders. Every quarter, the editorial team identifies management best practices and lessons from the world’s most successful CEOs and their teams. The goal is to provide C-level readers with new perspectives, insights, intelligence reports, expert opinions, objective analysis, case studies, white papers, and decision-making tools to help them address emerging opportunities and challenges. The CEO Q editorial philosophy is to focus on breakthroughs in management thought and practice. The authors are required to frame their findings in a format that saves the CEOs’ valuable time and effort in developing and aligning their executive teams. CEO Q is not a news magazine. It is a CEO continuing education and organizational development tool. CEOs can share the magazine articles with their teams to promote best practices, with the board of directors to advocate new strategies, and with their clients to promote new products or services. Special Edition - CEO Awards In addition to our regular executive editions, we occasionally publish special management reports on major global or regional business opportunities, challenges, lessons and success stories. In this edition, CEO Q honors the Most Respect CEOs by profiling their achievements and sharing some of their executive insights. These are the CEOs to learn about and learn from. The research behind the CEO Awards was conducted in partnership with the International Institute of Management. IIM is a best practices research and executive education institute based in Las Vegas, Nevada, USA. CEO Q Sponsorship This edition of CEO Q magazine is sponsored by the International Institute of Management (www.iim-edu.org) and its CEO Club (www. ceoclub.eu) We encourage you to learn more about the sponsors who made this special edition possible.

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How to Evaluate a CEO? The Top 20 CEO Questions

A Self-Assessment Tool International Institute of Management The proper evaluation of the CEO and the executive team is critical to the companyâ&#x20AC;&#x2122;s performance. The evaluation framework of the CEO can be summarized into two major areas; business strategy formulation and execution.

Med Jones President of International Institute of Management (IIM) www.iim-edu.org

According to a best practices study conducted by the International Institute of Management, the CEOâ&#x20AC;&#x2122;s key challenge in formulating and executing the business strategy is not in finding answers to the tough questions, the challenge is in asking the right questions. Asking the wrong questions will result in skewed operational or strategic plans. IIM developed a list of the top 100 Board and CEO questions called the IIM100 Test. These questions provide a 360 degree view of the business. IIM100 questions can be used as a self-assessment test, as a planning session tool or as a framework for evaluating potential CEO/CXO candidates for succession planning. In this article, IIM shares the top 10 questions that every board must ask its CEO and the top 10 questions that every CEO must ask his/her executive team.

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The top 10 questions every board must ask its CEO: 1. Are we in the right business and markets? What are the growth areas to invest in and declining areas to divest? 2. What are the economic and market research data that support our strategy? 3. What are our strengths, weaknesses, opportunities and threats (SWOTs)? 4. What are we doing to address each one of the SWOTs? 5. What are our core competencies? How we can leverage them? 6. What are the key strategic and operational risks? How do we manage them? 7. What are our key performance targets? 8. How do we plan to achieve those targets? 9. How can we build a sustainable competitive advantage? 10. How can we improve governance, control and reporting functions? The top 10 questions every CEO must ask her/his executive team: 1. Do we have a big growth idea? 2. Do we have the right growth

engine (business model, infrastructure, resources and network)? 3. Does our operations management efficiently and effectively support our performance targets? How do we know? 4. Which vendors, partners, clients and employees are delivering the real value? How do we get more out of the rest? 5. What are the key SWOTs in each function, and how do you manage them? 6. How can we build a sustainable competitive advantage in each function (Marketing, R&D, SCM, IT, etc)? 7. What initiatives/programs/projects are needed to execute our strategy? How do we ensure that they are aligned and executed with the right quality, on time and within budget? 8. What are the key performance targets and incentives for each executive (CMO, CFO, COO, CIO, and CHO)? 9. Do we have the appropriate organization in place to meet those targets? (IIMâ&#x20AC;&#x2122;s 5D strategy framework: budget, tools, products, processes and people)? 10. How can we communicate our plans better to our stakeholders in order to win their support and achieve our goals? Every CEO/CXO must be able to provide the answers to the preceding questions, readily, clearly, and precisely. The executive team members must be able to provide qualitative and quantitative answers.

The CEOâ&#x20AC;&#x2122;s key challenge is not in finding answers to the tough questions, the challenge is in asking the right questions. Asking the wrong questions will result in skewed strategic or operational plans. If the executive team is not able to answer all of the preceding questions, then the leadership team suffers from management blind spots or a potential weakness. IIM developed strategic executive retreat and coaching programs to help the CEOs and their executives in answering these questions. The goal

of the strategic retreat programs is to provide crossfunctional collaboration to ensure a 360 degree business view and formulate comprehensive executive action plan. The strategic retreat sessions are facilitated by executive leadership and strategy experts. The role of the experts is to facilitate the planning sessions and provide an external point of view to objectively validate the answers to each question. The strategic planning program can be followed by custom corporate action-learning and support programs to help the management teams in executing and aligning the formulated strategies.

Which vendors, partners, clients and employees are delivering the real value? How do we get more out of the rest? What are the key strategic and operational risks? How do we manage them? What initiatives/programs/projects are needed to execute our strategy? How do we ensure that they are aligned and executed with the right quality, on time and within budget? If the executive team is not able to answer all of the preceding questions, then the leadership team suffers from management blind spots. About the Author Med Jones, is the President of the International Institute of Management (IIM). IIM is a management best practices research and education institute. IIM provides board and executive support services, strategic planning retreats and custom corporate training courses for the Global Fortune 1000 companies and governments. To learn more, please visit: www.iim-edu.org

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How to Evaluate the Board of Directors? The Board of Directors Scorecard One of the by-products of the global financial crisis is that more attention is being directed toward the board of directors. There is a significant rise in investors’ dissatisfaction, class-action lawsuits and shareholder activism. Shareholders’ complaints include issues such as excessive executive compensation, conflict of interest, lack of governance, and passive participation of the board members. President Barack Obama’s reform of financial regulations brings more focus to prompt corrective actions by federal banking agencies including one or more of the following; • Improving management • Ordering a new election for the institution’s board of directors; and/or • Dismissing directors or senior executive officers. While the target of the new regulations is the financial sector, the influence of these regulations will also impact publicly traded companies. Wall Street financial analysts, news media and internet blogs are paying more attention to executive compensation in relationship to the performance of the company. There are several infamous examples where some boards compensated their CEOs with hundreds of millions of dollars even though the company lost money during their leadership. The boards are accused, in these cases, as either lacking the competence or the will to govern CEO compensation. In these tough economic times, investors are becoming more proactive; they cannot afford to leave the governance of their investments to unqualified

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directors or to special interest groups. Boards are given more power to govern and control the performance of the CEO and the corporation. Investors are starting to ask the following questions: • Are the interests of the board members aligned with the shareholders or the CEO? • Are the board members qualified to govern on behalf of the shareholders? • How does the board evaluate the company’s direction? • Is the board of directors required to direct the company or just govern the CEO? • Does the board have the right skill-set, decisionmaking processes, and tools? The two questions that board members must ask themselves are: • Do we have the right information and tools to manage and improve our own performance as a governing board? • Do we have the power, knowledge and tools to conduct a comprehensive and fair CEO evaluation? Few organizations have come up with formal solutions to help investors evaluate both their CEOs and their board of directors. A number of leading experts suggest board self-assessments. This solution involves the use of management evaluation frameworks that only need to be applied once or twice a year. These formal evaluation frameworks not only define and clarify the overall standards of performance for the board, they also serve as educational, collaborative and consensus-building tools.

The International Institute of Management created a board of directors scorecard as an effective selfassessment tool. The scorecard covers the essential elements of the board’s duties and qualifications and is therefore a good starting point for an evaluation. In addition, the scorecard covers the board’s structure, culture, performance standards, quality of meetings, and strategic planning processes. Top 12 Board Questions The following partial list provides a sample of the evaluation questions: 1. Is there a formal policy document that defines the standards and procedures for the qualification, duties, nomination and selection of the board of directors? 2. What is the qualification of the chairperson of the board? • His/her independence? • What is his/her educational and industry background? • His/her board leadership and networking skills? 3. What is the optimal size of the board? • The number of board members can range from 3-33 depending on the company’s size. The average number is 9 members. How does the size and the geographic location help or limit board communications? 4. What is the composition of the board? • What knowledge and qualifications does each member bring to the board? • What value added networks do they bring to the board? 5. How independent is the board? • The compensation and the audit committees must be made up of independent members. What percentage are insiders vs. outsiders? • What special interest groups do they represent? • Is their compensation aligned with the company’s performance? • Do the members have a conflict of interest? Are they declared, monitored and managed? 6. Are the board members fully aware of their legal and ethical duties? 7. Is most of the CEO’s compensation performancebased? 8. Are the inside directors qualified to review

and approve high-level budgets prepared by upper management? Are they qualified for monitoring business strategy and core corporate initiatives? 9. Are the outside directors qualified to review and approve the strategic direction and key corporate policies? 10. Does the board evaluate their own performance on a regular basis? 11. How often and how well does the board communicate with investors? 12. How often and how well does the board communicate with the CEO and the executive team? Is the communication style active or passive? Political or cooperative? Every board must be able to provide clear answers to the preceding questions. If the board is not able to answer all of the preceding questions, then the board members suffer from governance blind spots or a potential weakness. IIM created strategic board retreats and development programs to help the board and their CEOs in answering these questions. In addition to developing board-level governance competencies, the goal of the strategic retreat programs is to improve the board and CEO collaboration, ensure a 360 degree business view and develop proper governance action plans. The strategic retreat sessions are facilitated by leadership and governance experts. The role of the experts is to facilitate the planning sessions and provide an external point of view to objectively validate the answers to each question.

These formal evaluation frameworks not only define and clarify the overall standards of performance for the board, they also serve as educational, collaborative and consensus-building tools. About the Author International Institute of Management is a management best practices research and education institute. IIM provides board and executive support services, strategic planning retreats and custom corporate training courses for the Global Fortune 1000 companies and governments. To learn more, please visit: www.iim-edu.org

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Book Author Interview Increasing Your Company’s Future Value

Leif Klingborg Author of K-concept

CEO Q: How do you see your role as a leader in your company? Klingborg: My role as leader is to connect everyone in my team to our future opportunities and then support them, step-by-step, to move there. The closer our hearts and minds are connected to our future, the more we can grow and develop our potential. Responsible leaders “gather their team” to build a common vision of the team’s ambition, value stream, future market, how to cooperate and so on. They regularly secure discussions supporting the common progress toward desired targets. CEO Q: How do you build momentum to achieve results? Klingborg: Successful leaders build momentum in each project and at each level of the organization by: • Securing choices about the company’s direction; “who we want to be” and “what we are building on”. • Identifying and developing the unique competences that will bring the company toward the edge of our market. • Communicating values important for building solid progress. • Creating supportive blueprints of how to accomplish this momentum in a well-organized way. CEO Q: What is the role of training and support in achieving company results? Klingborg: The CEO is supported by key team leaders with the goal of mobilizing all the company’s

human resources to become the driving force in building their “Interesting Tomorrow”. To accelerate the momentum every co-worker needs to be more self-dependent, take more initiative, take on more responsibility and extend their desire to learn. Coworkers need support and training to achieve this! They want to release their potential and grow in their profession. The team leader’s role is to develop training and support to close this gap and make the difference. More skilled and better trained leaders in an organization will accelerate the development of the human capital and the company’s overall performance. The balance between short-term and long-term team development is crucial to our ambition of building future value. CEO Q: What are the team’s expectations from their leader? Klingborg: My experience sums up the workforce expectations as follows; “We have lots of ambition inside our teams and we want our leaders to keep up our positive constructive mindset about our opportunities. We expect them to take responsibility so we will have the best plan and make sure that we are connected with the top expertise in our area. The better our leaders facilitate the common thinking process within our team, and support us with external connections, the faster we will move.” Team members want to feel ownership in their projects. People are expecting to be helped with this foundation; the context in which they deliver. Today, people have access to all crucial knowledge available in the world and the tools to connect and interact in new ways. They still need a method, a way of cooperating, that is fast, efficient and will support interaction with their surroundings.

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CEO Q: How do you develop future leaders? Klingborg: Great companies are eager to make choices about how to act today and in the future. They develop leadership behavior and company architecture to better fit with technological development opportunities and new behaviors that our environment is challenging us to find. Every generation’s needs are different. Each wants to find their unique style, way of thinking, communicating and acting. Leadership is about creating and facilitating the common thinking process of the people in the loop, it’s about them, it’s a living thing and it’s about today and the future. CEO Q: Can you share with us some of your key leadership concepts? Klingborg: Understanding and participation are two key concepts when we first involve everyone. By providing insight and including them, each team member becomes an empowered part of the decision making process. Then they will make individual choices connected to the common direction of the team. There are choices behind every developmental step. Building “Our Tomorrow” will happen when we establish a learningdevelopment process better and faster than the competition. Team members look for individual discussions/coaching about their contributions, their competences, their role and how to follow the plan. They feel empowerment when leaders nurture their “We-spirit”; they want cohesion, diversity, hope and an environment filled with energy and constructive ideas. CEO Q: What is the best way to achieve a unified direction? Klingborg: The team will get needed perspectives when their leaders regularly take the initiative to look from the outside in: Where are they currently in their process? How do they feel, think and act? They receive crucial help to analyze, package and learn from the past. They grow in understanding

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and will be even more united about the next step in their progress. We are on the right track when our foundation increases cooperation and builds up cohesive teams and team members’ selfconfidence. Feeling strong, safe and secure in their working situation. The co-workers’ ambition of connecting with the market edge will grow. We are always on our way from yesterday toward tomorrow, somewhere between the old and the new! We know our direction! CEO Q: How best to train the leaders? Klingborg: Co-workers want their leaders trained for: • • • •

Continually growing team members’ and teams’ brainpower in their niche. Developing the emotional strength needed to be proactive in various situations. Growing social capacity within the team, building and developing relationships in every important field and direction. Increasing individuals’ and teams’ understanding how to stay fair, building trust and credibility in the market.

About Klingborg Klingborg Consulting serves companies that have highly complex and challenging development processes. Klingborg’s experience comes from cooperating with more than 20,000 leaders. The founder, Leif Klingborg, known as the “leader of leaders”, has successfully supported executives, leaders and world-class coaches. He is also the creator of the K-concept, a successful method of mentoring leaders to accelerate the movement toward their organization’s goals. Since 2000, Leif has been deeply involved in two renewable energy projects, seabased.com and verticalwind.se. Klingborg was awarded finalist honor in the 2010 International Book Awards. Klingborg lives and work out of Stockholm, Sweden. He can be reached at www.klingborg.com

CEO Awards Most Respected CEOs Welcome to the 2010 CEO Awards. The “Most Respected CEOs” edition is a collaborative project between CEO Quarterly Magazine and the International Institute of Management. CEOs had a difficult year in 2009. The financial and economic crises caused a great deal of damage to the confidence of investors, consumers and employees. CEOs had to make difficult decisions to deal with declining revenues and layoffs, while at the same time finding innovative ways to re-energize growth. Several industries were hit the hardest including financial, auto, housing, retail, media and advertising industries. In the U.S. alone, more than 100 banks closed and more than 100 media outlets went bankrupt or sold. Industry survivors were especially considered for their abilities to lead in difficult times.

The CEOs real test is not how well they do during good economic times and bull markets, but also how they manage stakeholders’ interests and mitigate risks during an economic downturn. What are the CEO Awards selection criteria? According to Med Jones, the president of International Institute of Management, “At IIM we wanted to identify the most respected CEOs, not the most famous or most liked. The key criterion for inclusion was the respectability of the CEO by his/her stakeholders, namely the company’s clients, employees and investors. Our team researched each CEO by asking the stakeholders what they thought of the CEO and his/her performance. While this was

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a subjective measure, we also looked at objective measures such as the CEO achievements relative to his or her peers in the industry. Since 2009 was an exceptionally difficult year, the CEO achievements were judged less by the latest financial performance and more by the long-term performance of the company under the CEO’s leadership. CEO achievements can be growth in revenues and profits, turnaround, strategic expansion into new markets, increasing market share relative to competition, successful mergers or acquisitions, introducing new breakthrough products/services, pioneering new business models, and so on. Unlike other CEO ranking lists, the CEO is not judged in absolute terms of the revenue or asset size of his company. The CEO of a smaller, but well-managed company that provides higher growth and better returns for investors is more likely to be considered for inclusion than the CEO of a much bigger company that has been losing money and stock value for several quarters. While the size of the company is an indicator of the company’s position in its market and the CEO abilities, it was not the main criteria for inclusion. The track performance of the individual CEO is considered more important.

The company’s performance is judged relative to its competition and industry conditions. For example, banks that overcame the financial crisis gain higher levels of respectability for surviving the industry collapse, so the relative performance

expectation is different for each industry. CEOs who survived the financial crisis received higher respectability scores from their investors, clients and employees, even when their revenues or profits were down in 2009.

• David Blair, CEO of Catalyst Health, the youngest CEO on the list, who manages a company of less than 1,000 employees and generates more than 3.2 billion in revenues.

This year, we selected 18 CEOs from 17 publicly traded companies and 1 nonprofit bank. Four special CEO honors went to: The research of the “Most Respected CEOs” has taught us new and important • Carlos Ghosn, CEO of Nissan Motors, lessons that challenged the many for the successful turnaround of a common misconceptions about the global giant, and for making a profit in ideal CEO’s personal and professional 2009 during the worst global crisis to profiles. hit the auto industry • Steve Jobs, CEO of Apple for transforming the way we use phones and making Apple one of the most valuable global brands and companies in the world • Muhammad Yunus, CEO of Grameen Bank for pioneering a new model of successful multibillion dollar social bank and leveraging capitalism principles that helped approximately 3 million families fighting poverty conditions

It is worth noting that no list is all inclusive. There are many CEOs who are highly respected by their stakeholders but were not included in this year’s list. The dominance of American CEOs on the list is not an indication of a better global respectability; it is the result of this year’s focus on U.S.companies. Next year, we plan to expand our listing to cover more CEOs from all over the world, and to give our readers the chance to learn from their experiences, successes and insights. About IIM International Institute of Management (IIM) is a U.S. based management best practices research and education institute. IIM provides CEO and executive support services, strategic planning retreats and custom corporate training courses for the Global Fortune 1000 companies and governments. To learn more, please visit www.iim-edu.org

Q4 / 2010 | www.ceoqmagazine.com

CEO Awards Most Respected CEOs Carlos Ghosn Nissan-Renault A Special CEO Honor

Carlos Ghosn CEO of Nissan-Renault The Global Leadership and Turnaround CEO Company Profile Industry: Auto Manufacturing Employees: 150,000 Revenues: $83B Market Cap: $36B

Carlos Ghosn receives CEO Q top honor and leads the list of the Most Respected CEOs for 2010. This honor is given to him for his legendary turnaround of Nissan Motor Co. and his global leadership success against all odds. The CEO Challenge 1. From 1993-1999 Nissan global operations suffered 7 years of losses. Credit rating services threatened to lower their status from “investment grade” to “junk”. 2. At the same time, Asia was in the middle of the worst financial crisis. 3. Carlos was asked to manage the turnaround of Nissan, based on his reputation of cost-cutting at Renault (A French car company). 4. The company has formidable financial and operational challenges, both in scale and complexity 5. Everyone hates change. Changing a global giant is

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even more difficult. 6. Mr Ghosn was born to Lebanese parents in Brazil, educated in France, considered a gaijin (alien) in a society that suspects foreigners, and he does not speak Japanese! CEO Achievements Ghosn executed the Nissan Revival Plan (NRP) by cutting costs and increasing revenues at the same time. He turned around Nissan to profitability in less than 18 months and achieved the best financial performance in the company’s history. Nissan became the car manufacturer that grew the most, not only in growth rate but in absolute numbers too. In fiscal year 2009, Nissan made a profit while most other automakers were losing money. Obama’s administration asked Mr. Ghosn to run General Motors Corp. but Ghosn declined the request in order to focus on building Nissan-Renault. In

2010, the Renault-Nissan Alliance became the first to mass-market, affordable zero-emission vehicles (Nissan LEAF). Vehicle pre-orders in the U.S. and Japan have already surpassed the available production capacity for fiscal year 2010. CEOs can learn a lot from Ghosn, whether they are seeking growth through innovation, executing a turnaround plan or leading in the global economy.

Mr. Ghosn was born in Brazil on March 9, 1954 to Lebanese parents. He graduated with engineering degrees from École Polytechnique in 1974 and from École des Mines de Paris in 1978.

CEO Insights

It sometimes seems to me the North Americans, Europeans and Japanese working here are becoming more alike than they are different

CEO Bio

China will be the answer to Japan’s Carlos Ghosn is the president and CEO of problems Nissan Motor Co., Ltd., a global automotive company with 180,000 employees and $83 billion in revenues. Mr. Ghosn joined the company as its COO in June 1999, became its president in June 2000 and was named CEO in June 2001.

In May 2005, Mr. Ghosn became the president and CEO of Renault S.A. in addition to his current responsibilities at Nissan. As head of the Renault-Nissan Alliance, Mr. Ghosn is responsible for two separate companies with combined annual global sales of 6.1 million vehicles. Mr. Ghosn currently serves on the board of directors of Alcoa. Prior to joining Nissan, Mr. Ghosn served as EVP of the Renault Group, since December 1996. He was responsible for advanced research, car engineering and development, car manufacturing, powertrain operations and purchasing. Before he joined Renault, Mr. Ghosn had worked with Michelin for 18 years. As chairman and CEO of Michelin North America, Mr. Ghosn presided over the restructuring of the company after its acquisition of the Uniroyal Goodrich Tire Company in 1990. Previously, Mr. Ghosn had worked as the COO of Michelin’s South America based in Brazil; as head of research and development for industrial tires in Ladoux, France; and as plant manager in Le Puy, France.

In the car industry, superior design is critical. Product design defines the first impression the customer has about our products. With one look the customer makes their decision about their appeal. Of course, an attractive design is not enough to make a product a success, but it is necessary

We don’t know where the markets are going, ... We have to observe what’s going down, see the trends, look at every vibration on the market, prepare the technology and jump when consumers start to think one way or the other Fiscal year 2009 was a challenging year in the global economy and in the global automotive industry...While we have managed through the financial crisis and recession, we have not compromised our strategic priorities. For example, we have not slowed our investments to contribute to a zero-emission society. When the Nissan LEAF goes on sale this year, the Renault-Nissan Alliance will be the first to mass-market affordable zeroemission vehicles. Q4 / 2010 | www.ceoqmagazine.com

CEO Awards Most Respected CEOs Christopher Connor Sherwin-Williams CEO Achievements

Christopher Connor CEO of The SherwinWilliams Company The Talent CEO Company Profile Industry: Specialty Retail (Paints) Employees: 29,200 Revenues: $7.3B Market Cap: $7.87B

• Over the past 10 years, SherwinWilliams shareholders have enjoyed an average annual return, including dividends, of almost 14 percent. • Despite disappointing results during the 2009 financial crisis, the free cash flow for the year increased by approximately $12 million to an all-time high of $605 million. • Sherwin-Williams is rated as one of America’s top 100 companies to work for. • The company’s culture of excellence has created an environment where outstanding technology, operational excellence and engagement all continue to play a role in the Company’s growing success. CEO Bio Christopher Connor is Chairman and CEO of The Sherwin-Williams Company, a global leader in the paint and coatings industry. Mr. Connor was elected CEO by the company’s board of directors on October 25, 1999 and added the title of Chairman on April 26, 2000. Mr. Connor,

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53,

began his

employment with The SherwinWilliams Company in 1983 as Director of Advertising for the Paint Stores Group. Over his 25year career with Sherwin-Williams, Mr. Connor has held a number of increasingly important assignments in many different functional areas of the Company. In addition to The Sherwin-Williams’ Board of Directors, Mr. Connor serves on the board of the Eaton Corporation. His many civic and community board engagements include the Greater Cleveland Partnership, the Rock and Roll Hall of Fame and Museum, The Playhouse Square Foundation, University Hospitals Health System, United Way Services of Greater Cleveland, The Commission on Economic Inclusion, Team NEO, Fisher College of Business at The Ohio State University, the National Manufacturers Association and The National Paint and Coatings Association. Mr. Connor is the past Chairman of the Board for Keep America Beautiful, University Hospitals Health System and Walsh Jesuit High School. Mr. Connor is a 1974 graduate of Walsh Jesuit High School and a 1978 graduate of The Ohio State University.

CEO Insights We look for top talent, because we believe people are the ultimate competitive advantage. We reward innovative people with a real drive to accomplishment. 20, 30, 40 year careers are not uncommon in our company. That is why we are rated as one of the top 100 companies to work for. We enter 2010 cautiously optimistic that the worst of the global recession is behind us. At the same time, we acknowledge that economic recovery may be slow and erratic, and coatings demand in many end markets will likely remain weak. Over the past three years, we have worked hard to make Sherwin-Williams a leaner, financially stronger and more profitable company. We have fine-tuned our capital structure, tightly managed fixed costs and SG&A expense, reduced inventories and expanded our distribution platform domestically and abroad. These actions, along with our continued focus on serving a diverse and increasingly global customer base, have positioned us to perform well through the balance of this recession and outperform in a recovery. We are confident that 2010 will be a year of improvement for the Company. About Sherwin-Williams Sherwin-Williams operates over 3,350 paint stores in the United States, owns many of the paint and coatings industry leading brand names, and sells products in over 50 countries around the world.

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CEO Awards Most Respected CEOs David Blair Catalyst Health A Special CEO Honor David Blair is one of the best CEOs under 40 years old. At a young age, he took the company to great growth levels. Under his leadership, Catalyst Health became one of the fastest growing companies in the world. CEO Achievements David Blair CEO of Catalyst Health Solutions The Fast Growth CEO Company Profile Industry: Insurance Brokers Employees: 995 Revenues: $3.2B Market Cap: $1.93B

• Revenue growth from $5 million at IPO (1999) to $3.6 billion in projected revenue for 2010 • Market cap growth of 750% in 10 years, from ~$200 million in 1999 to about $1.5 billion • Net Income compounded annual growth rate (CAGR) of 30% since 2005 • In the two most recent consecutive years, Catalyst Health Solutions, Inc has been awarded the top customer satisfaction ratings for “Overall Service and Performance” in the Pharmacy Benefit Management Institute (PBMI) Pharmacy Benefit Manager (PBM) Customer Satisfaction Report

to develop the Company’s supplemental benefits programs, resulting in record growth. In 1999, Mr. Blair was named the Company’s CEO and Director of the Company’s Board of Directors. In 2001, Mr. Blair launched a major initiative to complement the Company’s supplemental benefits and expanded into the pharmacy benefit management industry through selective acquisitions and strategic investments. Catalyst Health Solutions, Inc. has experienced a rate of growth substantially greater than its competitors and positioned itself as a market leader in providing superior quality of care and unbiased pharmacy benefit management solutions.

CEO Bio

The company maintains a strong focus on innovation, efficiency, and superior service and has a long-standing commitment to transparency and flexible pricing options from traditional to fully passthrough.

David Blair joined Catalyst Health in 1997 as CFO and subsequently spearheaded a successful national marketing research campaign

With a commitment to innovation and a unique knowledge of the healthcare industry, Mr. Blair has steered Catalyst Health Solutions,

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Inc. from a small regional player to a nationally recognized healthcare company. The company is built on strong, innovative principles and provides an unbiased, clientcentered philosophy, which has consistently resulted in industry-leading client retention rates and performance. Prior to joining Catalyst Health Solutions, Inc., Blair served in a financial role for United Payors and United Providers, where he contributed to the Company’s initial public offering and several strategic acquisitions. He is a Director of the Leadership Board for the Christopher and Dana Reeve Foundation and is a frequent participant in panel discussions and on advisory boards and steering committees, where he lends his entrepreneurial skills and expertise in healthcare to advance various initiatives.

CEO Leadership “While the abilities to think strategically, embrace innovation and drive performance are important hallmarks of a good leader, a great leader is one who creates and sustains a work environment that consistently motivates employees to perform at their best. David has effectively managed through such changes by utilizing timely communication to keep employees focused and engaged, while maintaining a steadfast commitment to leadership development as a means to ensure the success of the organization’s pipeline..” - Monica Wolfe - Vice President, Human Resources

CEO Insights

Our success at Catalyst Health has been driven by our commitment to continually recruit and retain the best and brightest professionals in our industry. We reinforce throughout the organization our vision of placing the unique needs of our clients first - having a simple, common objective empowers our employees and aligns business decisions. We challenge our team to identify and develop innovative, targeted solutions aimed at meeting and exceeding our clients’ expectations. We then focus on effective corporate-wide communication processes and appropriate performance incentives. All strategy, from the delivery of our services, to improvements that maximize operational efficiencies, to the development of lowest net cost solutions are built around these key principles. The Company’s commitment to transparency, customized programs, and lowest net cost solutions in the management of pharmacy benefits continues to drive our success About Catalyst Health Solutions Catalyst Health Solutions, Inc. (NASDAQ CHSI) manages prescription drug benefits for more than 7 million people in the United States and Puerto Rico. Its subsidiaries include Catalyst Rx, a full-service pharmacy benefit manager; HospiScript Services, LLC, one of the largest providers of pharmacy benefit management services to the hospice industry; and Immediate Pharmaceutical Services, Inc., a fully-integrated prescription mail service facility in Avon Lake, Ohio. The Company’s clients include self-insured employers including state and local governments, managed care organizations, unions, hospices, third-party administrators and individuals.

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CEO Awards Most Respected CEOs David Simon Simon Property Group CEO Achievements In 1993 Simon led the efforts to take Simon Property Group public with a nearly $1 billion initial public offering that, at the time, was the largest real estate stock offering.

David Simon CEO of Simon Property Group The M&A CEO Company Profile Industry: REIT -Retail Employees: 3,300 Revenues: $2.81B Market Cap: $28.3B

Mr. Simon became CEO in 1995. Since that time, he has orchestrated more than $25 billion in strategic acquisitions that, together with ground-up development, have allowed the company to assemble a portfolio of top-tier shopping centers that serve as home to virtually every top retailer. The strategic acquisitions and highly disciplined expense management created a superior shareholder value over the past decade including last year’s worst financial crisis. Under his leadership , the company delivered a total stockholder return of 58% in 2009, significantly outperforming total returns of the MSCI U.S. REIT Index (“RMS”) of 28.6% and the S&P 500 Index of 26.5%. SPG has outperformed both the RMS and the S&P 500 in nine of the last ten years. CEO Bio David Simon joined the company

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in 1990 and became the CEO in 1995. Simon Property Group, Inc., an S&P 500 company and the largest U.S. publicly traded real estate company. Simon Property Group is a fully integrated real estate company which operates from five retail real estate platforms: regional malls, Premium Outlet Centers®, The Mills®, community/lifestyle centers and international properties. The Company currently owns or has an interest in approximately 380 properties in North America, Europe and Asia. Before joining the organization, Mr. Simon was a vice president of Wasserstein Perella & Co., a Wall Street firm specializing in mergers and acquisitions and leveraged buyouts. Mr. Simon is a member and former chairman of the National Association of Real Estate Investment Trusts (NAREIT) board of governors and is a former trustee of the International Council of Shopping Centers (ICSC). He has received numerous industry honors, and in 2000, he was inducted into the Indiana University Kelley School of Business Academy of Alumni Fellows. Mr. Simon is recognized as one of the world’s best-performing CEO’s.

Mr. Simon is the son of the late Melvin Simon, chairman emeritus of Simon Property Group. He holds a B.S. degree from Indiana University and an MBA from Columbia University’s Graduate School of Business.

CEO Insights The Prime Outlets portfolio is an excellent strategic fit and presents a compelling opportunity for Simon to benefit from shoppers’ increased demand for discounted brand-name merchandise. We believe that our strong track record of operational excellence, financial resources, and history of successful acquisitions, make us well positioned to improve the performance of these assets for the benefit of tenants, retailers and consumers Simon’s offer provides the best possible outcome for all General Growth Property (GGP) stakeholders. Simon is in the unique position of being able to offer GGP creditors and shareholders full, fair and immediate value. Our offer provides muchneeded certainty to conclude GGP’s protracted reorganization process. We are confident it is the best option for all GGP constituencies and far superior to any other third-party proposal or standalone plan that could be completed. This acquisition also offers a compelling value-creation opportunity for Simon shareholders. Simon’s strong track record of successfully completing large acquisitions and our history of delivering superior propertylevel performance ideally position Simon to create additional value with GGP’s portfolio

[I was confident that] we could pull through one of the most difficult economic crises on record. We had the people, the vision, the properties, the balance sheet and the work ethic to navigate our way through turbulent times. One year ago, the world was in an economic meltdown. U.S. stocks plunged to new bear-market lows following financial market fears that

brought the Dow down to levels not seen since 1997. SPG common stock was trading below $30 per share. We were in the midst of a national credit crisis and the debt markets were dysfunctional. Unemployment was on the rise. Retailers were experiencing continued declining sales and bankruptcies were increasing. We expected, and in fact experienced, a very difficult year. Despite the negative external factors, from the economy to the consumer, the landscape provided us with the opportunity to demonstrate our position as a leader in the real estate industry. Our people rose to the challenge and we accomplished what we set out to do. Today, we have over $4 billion of cash on hand, including our share of joint venture cash, and availability on our corporate credit facility of more than $3 billion, for a total liquidity position in excess of $7 billion. This capital will keep us wellpositioned to pursue new opportunities in our efforts to profitably grow the Company. We will also use this capital to continue our efforts to de-leverage the Company About Simon Property Group Simon Property Group, Inc. is an S&P 500 company and the largest real estate company in the U.S. The Company owns or has an interest in 393 retail real estate properties comprising 263 million square feet of gross leasable area in North America, Europe and Asia. Simon Property Group is headquartered in Indianapolis, Indiana and employs more than 5,000 people worldwide. The Company’s common stock is publicly traded on the NYSE under the symbol SPG. Q4 / 2010 | www.ceoqmagazine.com

CEO Awards Most Respected CEOs Eric Schmidt Google CEO Achievements Since joining Google in March 2001, he has helped grow the company from a Silicon Valley startup to a global company. Today, Google is the Internet’s premier brand for search, media and advertising.

Eric Schmidt CEO of Google Inc The Search CEO Company Profile Industry: Internet Search, Media and Advertising Employees: 21,800 Revenues: $26.21B Market Cap: $150B

Half of Google’s revenue comes from selling text-based ads that are placed near search results and are related to the topic of the search. Another half of its revenues come from licensing its search technology to companies like Yahoo. As the CEO of Google, Eric has delivered steady growth while expanding Google’s global reach. He attributes this success to Google’s ability to attract and develop top talent. Eric built an organization and a work environment that allowed the free flows of information and encouraged employees to innovate. Google internal work model is based on innovative collaborative projects. Staff devote 20 percent of their work time to special projects of their own design, a policy that is at the core of its innovation culture.

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While CEO of Google in 2008 and 2009, Schmidt earned a base salary of just $1, and other compensation of $508,763 in 2008 and $508,763 in 2009. He did not receive any cash, stock, or options. Schmidt is one of the few people who have become billionaires based on stock options received as an employee in a corporation. CEO Bio Eric Schmidt left Novell after the acquisition of Cambridge Technology Partners. He was interviewed by the founders of Google, Larry Page and Sergey Brin and hired him to run their company under the influence of venture capitalists John Doerr and Michael Moritz. At Google, Schmidt shares responsibility for Google’s daily operations with founders Page and Brin. Google is a triumvirate (from Latin, “of three men”) a political regime dominated by three powerful individuals. Schmidt focuses on building a global corporate infrastructure needed to maintain Google’s rapid growth as a company and on ensuring that quality remains high while product development cycle times are kept to a minimum.

Schmidt’s technical and business background uniquely prepared him to lead Google. Prior to joining Google, Eric was the CEO of Novell and Chief Technology Officer at Sun Microsystems, Inc.

everyday is: “This is what we do. Is what you are doing consistent with that, and does it change the world?”

Earlier in his career, Eric was a member of the research staff at Xerox Palo Alto Research Center (PARC) and held positions at Bell Laboratories and Zilog. He holds a bachelor’s degree in electrical engineering from Princeton University as well as a master’s and Ph.D. in computer science from the University of California, Berkeley.

Search companies, which I won’t mention by name, tried to do so many things at the same time, they forgot all about search. They either missed the next revolution of search or they created an opening for a Google to enter

Eric is a member of President Obama’s Council of Advisors on Science and Technology. He was elected to the National Academy of Engineering in 2006 and inducted into the American Academy of Arts and Sciences as a fellow in 2007. Eric also chairs the board of the New America Foundation. A former member of the Board of Directors of Apple Inc. He also sits on the board of trustees for Carnegie Mellon University and Princeton University.

CEO Leadership Google organizational and human capital strategy is summed up by Ivan Ernest, Head of HR, Engineering & Operations. “Hire learners. Trust them.Give them freedom, information and tools. [Execute via] Flat structure, small projects and small teams. Discuss everything in public. Be meritocratic. Reward success, but don’t penalize failure.”

Technology is always evolving, and companies can’t be afraid to take advantage of change The thing that people seem to miss about not just Google, but also our competitors, Yahoo, eBay and so forth, is that there’s an awful lot of communities that have never been served by traditional media We weren’t here to hope and hang on. We wanted to win When the Internet publicity began, I remember being struck by how much the world was not the way we thought it was, that there was infinite variation in how people viewed the world

CEO Insights

Anytime you’re in a pressure situation you find out who’s going to step up and do it and who’s going to fade into the I’m able to bring business expertise, but background more importantly, operating experience. The people at Google are young. Every The competitive threat has been a big day there are lots of new challenges. I overhang on the stock and I would say keep things focused. The speech I give about half that has been lifted Q4 / 2010 | www.ceoqmagazine.com

CEO Awards Most Respected CEOs Jeffrey Joerres Manpower CEO Achievements In 2008, Manpower celebrated its 60th anniversary. Considering the average multinational company lasts between 40 and 50 years, this is a major achievement to the executives that built and led the company.

Jeffrey Joerres CEO of Manpower Inc. The People CEO Company Profile Industry: Staffing and Outsourcing Employees: 28,000 Revenues: $17.3B Market Cap: $4B

Despite the global recession, Manpower operating cash flow continues to be strong, at $414 million, ending 2009 with $1 billion in cash. Manpower is the world leader in RPO (recruitment process outsourcing). As the CEO, Jeff has led a transformation of Manpower’s business strategy, adding new business lines that have expanded the company’s ability to assist clients and candidates in navigating the changing world of work. His role at Manpower has seen him advising domestic and foreign government officials about how to transform their labor markets to compete in the global economy. Under Jeff’s tenure, Manpower has experienced rapid growth, expanding the footprint of the organization to 4,100 offices across 82 countries and territories. His achievements for the company have seen Manpower share value

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more than triple, and the company has climbed the ranks of the Fortune 500 American companies list, moving from 183 to 119 in 2009. Jeff is a strong proponent of job training and workforce development initiatives. CEO Bio Jeffrey A. Joerres is Chairman and CEO of Manpower Inc. Having joined Manpower in 1993, Jeff served as Vice President of Marketing, and later, as Senior Vice President of European Operations and Global Account Management. It was in 1999 that he was promoted to President and CEO, and in 2001 that he was named Chairman of the Board. Outside of the company, he serves on the board of trustees for the Committee for Economic Development (CED), and is co-chair of the CEO Diversity Committee of the Greater Milwaukee Committee. In addition, Jeff was the 2008 Cochair at the World Economic Forum India Economic Summit. Prior to joining Manpower, Jeff held the position of Vice President of Sales and Marketing for ARI Network Services, a publicly held, high-tech

electronic data interchange company. He has also held several management positions within IBM. In addition to the Manpower’s board, Jeff is a member of the board of directors of Artisan Funds, Federal Reserve Bank of Chicago, Johnson Controls and the U.S. Council for International Business (USCIB). He is also a 2008 Woodrow Wilson International Award Recipient for Corporate Citizenship; Featured Second Life Thought Leader in 2009 Evolution of the Virtual Workforce; Featured Panelist in 2009 U.S. Secretary of Education Initiative for Advancement of Technical Colleges to Address Trade Skills Gap. Jeff has a bachelor’s degree from Marquette University’s College of Business Administration, from which he graduated in 1983.

CEO Leadership “Jeff’s leadership style is rooted in role modeling. He conducts himself the way he expects his employees to behave – as true ambassadors for the Manpower group of companies with a passion for people and the role of work in their lives. He is relentless in his pursuit of the company’s goals – providing our clients with the best possible talent - but knows how to balance cost reduction with investment. Jeff has motivated the whole organization to get behind what we are trying to achieve.” VP of Human Resources

CEO Insights It is critical to get out of your office and meet people face to face. You have to stay connected with your people so that you know where the challenges lie within your organization. The imperial

CEO belongs to a bygone age - in the contemporary world of work, CEOs are here to serve, not to be served, and management is all about flexibility and agility. Being solution-oriented is a big part of being a leader - it’s a tremendous leadership quality Talent mismatch is a global problem, but it is more acute at the mid- to higher-level skills To foster job creation, one of the groups that initiatives should be targeted at is potential new business owners. New small business owners will drive longterm job creation in this country, and skilled trade workers can potentially own their own business and have three or four employees within a few years The [regulation] is hindering one of our greatest sources of innovation by having too low a limit on the number of nonimmigrant (H1B) visas. We are preventing the brightest minds from entering the country, which is nonsense given that the growth of this country came from people who arrived here from overseas with an idea, developed it and created employment. Two thirds of Silicon Valley companies were started by people born outside the U.S. If the brightest minds cannot come to the U.S., it will be our loss because there are plenty of other places like Shanghai, Mumbai, Abu Dhabi, Qatar and Dubai...[This] harms our competitiveness on the world stage Q4 / 2010 | www.ceoqmagazine.com

CEO Awards Most Respected CEOs John Wren Omnicom Group CEO Achievements John Wren, 58, is the President and CEO of Omnicom Group Inc., the leading global marketing and corporate communications company. He was named CEO in 1997 and elected President in 1996. John Wren CEO of Omnicom The Advertising CEO Company Profile Industry: Advertising Services Employees: 63,000 Revenues: $12B Market Cap: $11.8B

Under his direction, Omnicom, founded in 1986, has achieved status as a world-class company with the best corporate and divisional management in the advertising and marketing communications industry, as well as the leading brands in marketing, including BBDO, DDB, Fleishman-Hillard, Interbrand, Ketchum, OMD, PHD, Porter Novelli, Rapp and TBWA. Mr. Wren entered the advertising business in 1984, joining Needham Harper Worldwide as an executive vice president. Part of the team that created Omnicom in 1986, he was appointed Chief Executive Officer of the Diversified Agency Services division of Omnicom in 1990. He was responsible for growing this division into the holding company’s largest operating group, comprised of companies in a wide array of disciplines ranging from public relations to branding.

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John has championed the company’s investment in the recruitment and development of talent through several key programs, including Omnicom University, an in-house global leadership development faculty. It forms the core of Omnicom’s commitment to attract, retain and motivate talent. Wren is involved with a number of philanthropic activities. A member of the Board of Directors of Lincoln Center for the Performing Arts, Inc., John is also a Vice-Chairman of Continuum Health Partners, the third-largest healthcare system in the New York Metropolitan area, and the Chairman of Long Island College Hospital. Mr. Wren is, in addition, a Trustee of the Arthur Ashe Foundation and active in healthcare education for disadvantaged communities. He received numerous accolades, including the Gold Medal Award from the Catholic Youth Organization and the Ellis Island Medal of Honor, for his many philanthropic contributions to the community.

CEO Insights Our success can be directly correlated to the full suite of skills our management teams bring to their agencies. Excellence in all aspects of business management is an ongoing priority and a core strategic advantage for Omnicom. For more than a decade and a half, we have invested in formalizing and disseminating our collective business knowledge through advanced education programs, seminars and conferences.

their offerings to better meet the needs of clients in a rapidly evolving digital environment

As we look at individual countries and regions, we are cautiously optimistic about continued global recovery (in 2010), although we expect significant variation by region...On the cost front, we continued to keep a close eye on costs and have asked our agencies to remain mindful of the potential risk to the economy...At the same time, our agencies are now increasingly focused on taking advantage of growth opportunities, both The story of 2009 was one of balance. through new business efforts as well as It was about how Omnicom’s leading growing our existing client accounts portfolio of global advertising and marketing brands, balanced by Our business is built on the strength of geography and discipline, withstood the our management teams and the talented worst global recession in the Company’s professionals around the world. They history. It was about the remarkable job have worked extremely hard to help us our agencies did of balancing the need to navigate through last year...We adjust manage costs with the need to maintain our incentives (bonuses) based upon the high quality of services they provide to what the outlook is. It’s done at least clients...Perhaps most importantly, it was once a quarter where we look at that about how Omnicom was able to balance and we make whatever adjustments are the short-term response to our difficult appropriate economic environment with a long-term strategy to grow our exceptional portfolio We intended to use our strong balance of businesses and take advantage of sheet to increase our dividend, buyback the many opportunities that economic stocks, and make strategic acquisitions recovery will offer The beautiful thing about Omnicom is We challenged our agencies to align no single client is that significant. There costs with anticipated decreases in are a lot of clients. It’s not that we have revenue. We challenged them to do far five major clients and we are tracking our more with much less, while also adjusting progression against those five Q4 / 2010 | www.ceoqmagazine.com

CEO Awards Most Respected CEOs John Stumpf Wells Fargo & Company CEO Achievements In addition to leading one of the world’s largest banks and financial services companies, John Stumpf is respected for his leadership performance and honesty. A CEO that does not sugarcoat or omit bad news is a CEO to trust. John Stumpf CEO of Wells Fargo & Company The Trust CEO Company Profile Industry: Financial Services & Banking Employees: 267,600 Revenues: $69.3B Market Cap: $135B

In his letter to the shareholders (during 2008 financial crisis) he said “We made some mistakes but kept our credit discipline...It will be a rough year for our economy and our industry. Consumer loans will continue under stress, chargeoffs [uncollectible debt] probably will continue to rise.” Wells Fargo emerged stronger than most other banks and the reason is that they did not invest in what they did not understand (unlike AIG, Bank of America, and Citigroup). Wells Fargo’s Recognitions • Ranked world’s 41st in Revenues in all industries (2009 Fortune) • Newsweek America’s #1 Green Bank and #13 Greenest Big Company (2009) • Human Rights Campaign Perfect Score of 100 on Corporate Equality

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Index (2009) • DiversityInc. Top 50 Companies for Diversity (2009) • Top 10 Companies for Recruitment and Retention • Bank Technology News #1 Bank Technology Innovator of the Year (2009) CEO Bio John Stumpf was named Chief Executive Officer in June 2007, elected to Wells Fargo’s Board of Directors in June 2006, and has been President since August 2005. He became the Chairman for Wells Fargo & Company in January 2010. A 27-year veteran of the company, he joined the former Norwest Corporation (predecessor of Wells Fargo) in 1982 in the loan administration department and then became senior vice president and chief credit officer for Norwest Bank, N.A., Minneapolis. He held a number of management positions at Norwest Bank Minneapolis and Norwest Bank Minnesota before assuming responsibility for Norwest Bank Arizona in 1989. He was named regional president for Norwest Banks in Colorado/Arizona in 1991.

From 1994 to 1998, he was regional president for Norwest Bank Texas. During his four years in that position, he led Norwest’s acquisition of 30 Texas banks with total assets of more than $13 billion. In 1998, with the merger of Norwest Corporation and Wells Fargo & Company, he became head of the Southwestern Banking Group (Arizona, New Mexico and Texas). Two years later he became head of the new Western Banking Group (Arizona, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington and Wyoming). In 2000, he led the integration of Wells Fargo’s acquisition of the $23 billion First Security Corporation, based in Salt Lake City. In May 2002, he was named Group EVP of Community Banking. In December 2008, he led one of the largest mergers in history with the purchase of Wachovia. He serves on the Board of Directors for The Clearing House and the Financial Services Roundtable. He also serves on the Board of Trustees of the San Francisco Museum of Modern Art. A Minnesota native, he earned his bachelor’s degree in finance from St. Cloud State University, St. Cloud, Minnesota and his MBA with an emphasis in finance from the University of Minnesota.

eyes and ears in industry, academia and non-governmental organizations to make sure we anticipate emerging environmental issues in our communities and globally The financial services business remains fragmented business. There isn’t any one player that controls 30, 40, 50 percent market share like you’d see in other industries We never participated in some of the real exotic things that the industry and others participated in. For example: we never understood why it made sense to make someone a loan, a home mortgage with negative amortization. So you would owe more on the home later than what you started with. That didn’t seem sensible to us. Because you don’t know what’s going to happen in the future.

CEO Insights

We call them team members (an asset in which to invest), not employees (an Demonstrating the benefit of our expense to be managed) diversified business model, most of our consumer business showed strong About Wells Fargo & Company Wells Fargo & Company (NYSE: WFC) is a growth this quarter and helped to offset diversified financial services company providing the decline at Home Mortgage banking, insurance, investments, mortgage and This outstanding group of environmental experts, representing diverse perspectives and expertise, will help Wells Fargo bring a thoughtful and balanced approach to integrating environmental considerations into our business practices. They’ll also be our

consumer finance through more than 10,000 Wells Fargo and Wachovia stores, 12,000 Wells Fargo and Wachovia ATMs, the internet and other distribution channels across North America and internationally. They headquartered in San Francisco. One in three households in America does business with Wells Fargo. Wells Fargo has $1.2 trillion in assets and more than 281,000 team members across its 80+ businesses. It is ranked fourth in assets and second in market value of its stock among its US peers as of December 31, 2009. Q4 / 2010 | www.ceoqmagazine.com

CEO Awards Most Respected CEOs Joseph Saunders Visa Inc CEO Achievements

Joseph W. Saunders CEO of Visa Inc. The CEO of the largest IPO in U.S. History Company Profile Industry: Payment Processing Network Employees: 5,700 Revenues: $ 7B Market Cap: $ 64B

When Saunders took the helm as Chairman and CEO at Visa In, he successfully combined several independent Visa entities, including operating units in the US, Canada, Latin America, Asia Pacific, and the Middle East, into a single global company. The Saunders-led $19 billion Visa Inc. IPO, which merged these entities, remains the largest IPO in U.S. history. Under Saunders’ leadership, Visa had a stellar track record of financial performance since the IPO. In the midst of the country’s economic challenges Visa has continued to post strong operational and financial performance, all while delivering excellent results for its shareholders. Since the IPO, Visa has consistently exceeded analysts’ expectations for each earnings period. The financial community has praised the resilience of Visa’s business model, the company’s diverse product set, and senior leadership’s ongoing commitment to expense management. In 2009, Visa returned more than $2.1 billion to shareholders in the form of

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dividends and buybacks. Additionally, Saunders has aggressively committed Visa to investing in innovation that enables consumers and clients to use Visa products and services in more ways and in more places. To position Visa for future growth, in 2009 Visa invested in its processing capabilities in two key areas: • Visa established a joint venture – Visa Processing Service Pte. Ltd. (VPS) with Yalamanchili International to deliver flexible processing services to clients outside the US. • In parallel, Visa opened a new global data processing center in North America with several IT enhancements that further improve the flexibility, reliability, and scale of VisaNet and increase Visa’s ability to process the ever-growing number of increasingly complex electronic payments around the world. Under Saunders, Visa has increased its commitment to global financial literacy. In 2009, Visa announced at the Clinton Global Initiative Conference that it would educate 20 million people worldwide about the fundamentals of money management by May 2013.

CEO Challenges Financial regulations and expanding to global markets under current global economic conditions CEO Bio Joseph W. Saunders was named chairman and chief executive officer of Visa Inc. in May 2007. Prior to his current role, Saunders served Visa International as executive chairman of the transition governance committee. He previously served as president of card services for Washington Mutual, Inc. after the acquisition of Providian Financial Corporation, where he acted as president and chief executive officer. From 1997 until 2001, Saunders served as chairman and chief executive officer of Fleet Credit Card Services at FleetBoston Financial Corporation. Saunders holds a B.S. in business administration and an MBA, both from the University of Denver.

CEO Insights Financial regulatory reform is meant to make our financial system safer and fairer for consumers. Now, it is about to be hijacked by the nation’s largest retailers, whose lobbyists have attached an amendment that would net their companies billions of dollars at consumers’ expense. It does the direct opposite of the bill’s intended purpose. It should be stripped out before the bill reaches President Barack Obama Online commerce continues to grow rapidly, and (CyberSource) acquisition will enable Visa to offer new and enhanced services that will better meet the growing demand among merchants globally for robust, secure online payment processing capabilities which in turn will grow the entire eCommerce category...

And, as eCommerce increasingly migrates to mobile devices, we believe the combination of Visa and CyberSource technology and services will position Visa to lead in mobile eCommerce Syncada complements Visa’s core payments business by expanding our capabilities in B2B supply chain management. By investing in this leading platform, we can offer Visa’s financial institution clients around the world access to Syncada’s services, backed by a comprehensive sales and support infrastructure that will help extend the reach and capabilities of Visa’s commercial product suite I am confident that Visa’s world-class employees, competitive strategy, leading brand and network, and diverse product offering will lead to continued success for the company...My experience working with Visa has demonstrated that this is a high-performing, highly focused team that delivers results About Visa Inc Visa is the world’s largest payments technology company. It connects consumers to 1.7 billion cards, millions of ATM and acceptance locations, and 16,400 financial institutions in more than 200 countries and territories around the globe, enabling them to use digital currency instead of cash and checks. At the heart of business is VisaNet, one of the world’s most advanced processing networks. It is capable of handling more than a half billion transactions per day. Visa does not issue cards, extend credit or set rates and fees for consumers. Visa’s network innovations, however, enable its bank customers to offer consumers more choices on how to pay – debit, prepaid, or credit cards.

Q4 / 2010 | www.ceoqmagazine.com

CEO Awards Most Respected CEOs Matt Rubel Collective Brands CEO Bio

Matt Rubel CEO of Collective Brands, Inc. The Retail CEO Company Profile Industry: Apparel Stores Employees: 13,500 Revenues: $3.32B Market Cap: $0.85B

Matt Rubel is recognized for his leadership in forming Collective Brands and establishing the company’s vision of creating the preeminent, consumer-centric, global footwear, accessories and lifestyle brand company. He is also recognized by the investment community as one of the top CEOs within apparel and footwear industry. Under Matt’s leadership, Collective Brands has evolved into a dynamic and diverse global enterprise, with a strong portfolio of iconic brands reaching consumers across the world through wholesale, retail, e-commerce, licensing and franchising channels. The company expanded its global footprint to nearly 100 countries worldwide. Matt is responsible for the Shoes4Kids program which donates more than 77,000 pairs of shoes to children during the holiday season Matt Rubel became the CEO of Payless and ShoeSource in June, 2005. Matt’s strategy was to create an inspiring, customer-centric organization with a new position as a specialty retailer dedicated to democratizing fashion in footwear and accessories.

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In July, 2007, Matt led the acquisition of The Stride Rite Corporation and the formation of Collective Brands, Inc. (NYSE: PSS), the parent company of Payless ShoeSource, Stride Rite (now named the Collective Brands Performance + Lifestyle Group) and Collective Licensing International. Matt was named CEO and President. In May, 2008, he was elected Chairman of the Board, CEO and President of Collective Brands, Inc. From 1999 to 2005, Matt was Chairman, President and CEO of Cole Haan, a leading marketer of high quality men’s and women’s shoes and accessories, and subsidiary of Nike, Inc. At Cole Haan, Matt guided the company into a new era by re-energizing the brand and creating a strong global presence. During his time with Cole Haan, the company doubled in size and expanded its global foot print, positioning the company as a leading fashion brand. Matt is active in several industry and civic organizations, including the Jay H. Baker Initiative at the Wharton School – University of Pennsylvania; Young President’s Organization; University of Miami Board of Trustees, Florida; Chairman

of the Footwear Distributors and Retailers of America; Matt is a member of the American Ballet Theater (ABT) Board of Governing Trustees, the International Council of Shopping Centers (ICSC) Board of Trustees, and the Board for National Retail Federation (NRF).

CEO Insights Be ready for change with dynamic action. Be creative, work with teams and build relationships. Learn from your mistakes and move on What is great for us is that kids continue to change size and our childrenâ&#x20AC;&#x2122;s business is doing well even in a recession High levels of unemployment currently at play could slow the recovery on Main Street and at retail. Employment growth is really a necessary factor for vibrant growth in the consumer sector Our strategy, regardless of the economic climate, is to remain focused on the consumers...They hold the key to any retailer or brand success We can be successful if we understand our customersâ&#x20AC;&#x2122; needs and desires, and then find innovative ways to deliver great product and provide an outstanding, experience in our stores Our CRM capabilities have grown beyond our expectations in the last few years, and are providing us with meaningful new insights on how to reach and connect with our customers on a deeper level Q4 / 2010 | www.ceoqmagazine.com

CEO Awards Most Respected CEOs Michael Dan Brink’s CEO Achievements Dan turned around of The Brinks Company by focusing the company business, divesting unprofitable companies, fixing a faltering BAX business unit and selling it for double the valuation from $600 million to $1.1 billion

Michael Dan CEO of Brinks The Coaching CEO Company Profile Industry: Security Services Employees: 50,000 Revenues: $3BB Market Cap: $1B$

Dan executed a strategy to improve the company’s operations and financial position following The Pittston Company’s failed attempt to sell Brink’s in the 1980s. Dan’s plan succeeded so well that, instead of selling Brink’s, The Pittston Company became Brink’s. One of the most significant achievements was getting out of the coal business. Under Dan’s leadership, the transition brought Brink’s back to its roots and left the company in a position to increase profits in the long term. Revenues at BAX another business unit had been faltering since the late 1990s. He made the decision to turn the company around, then sell it for higher valuation. In 2005, he sold BAX for $1.1 billion. Wall Street valuation of BAX at that time was at about $600 Million In the 1990s, when charged with

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improving the lackluster performance of Brink’s international affiliates, Dan instituted a policy of purchasing controlling interests in international affiliates whenever possible and dissolving or selling any joint venture that refused to cooperate. This policy gave the company the control it needed to ensure consistency of service and to transform from an international organization into a truly global company. In 1984, Dan decertified the Teamsters, a process that served as a strategic turning point for the company by lowering wage costs and making Brink’s a more competitive force in the industry. How he won his employee respect? • Establishment and funding of a retiree health and benefits plan to secure the future of retired employees from all Brink’s legacy businesses. • Establishing a universal, zerotolerance code of ethics throughout Brink’s global operations. • Instilling throughout Brink’s a focus on safety and security and, specifically, “bringing every employee home safely each night”.

CEO Bio Michael Dan, 59, is Chairman, President and CEO of The Brink’s Company. Dan joined the company in 1982 as Director of Automotive Design. Later, he became Regional Vice President, Executive Vice President of North America, then President and CEO of the Brink’s holding company with responsibility for all security businesses. In 1998, Mr. Dan became President and CEO of The Pittston Company, and in 1999 he was elected Chairman, President and CEO. Before joining Brink’s, Incorporated Mr. Dan was President of Armored Vehicle Builders, Inc. He attended Morton College and is a graduate of the Advanced Management Program at Harvard University.

CEO Leadership “Dan’s leadership style is incredibly open and always transparent. He’s a fantastic teacher and very engaged at all levels of the organization.” - Frank Lennon - VP & Chief Administration Office

CEO Insights In today’s world, rather than tell board members the answers, you have to involve them in the problem, get their input, and evolve issues so you end up with a strong consensus on the board. Although you won’t always get everyone aligned on every issue, a strong consensus helps leverage the board’s value and ensure you are getting their wisdom and insight as you run a very complicated global business For a CEO, nothing is more valuable than

time, and it’s important to understand your priorities so you can know how best to schedule your time and focus on the right things. You have to understand what you can and can’t do with your time I’ve learned that teams win. If you understand where you are, where you have to go and can get the organization lined up in support of the direction, the organization (the team)is unstoppable I am direct; I am hands-on. I cannot get enough information. I read company reports from every country, every sales person...Information gives me perspective. When I visit the field, armed with information, I can make sure that what I’m hearing and seeing supports what I’ve been reading. It allows me to give our managers new perspective and valuable insight to help them deal with personnel issues, operational problems, or other challenges At this point in my career, I’m almost like a professor, trying to transfer all my knowledge to the senior managers of this company About Brink’s Inc The Brink’s Company is a leading global security services company listed on NYSE with more than $3 billion in revenues, 50,000 employees worldwide, and operations in more than 50 countries. The Brink’s company provides armored car transportation, ATM servicing, currency and coin processing and other value-added services to banks, retailers and other commercial and governmental agencies around the world.

Q4 / 2010 | www.ceoqmagazine.com

CEO Interview Lessons from a Global CEO

Michael Dan - CEO of Brink’s Inc. A leadership interview with one of the most respected CEOs CEO Q: What is your most important professional achievements at your current company? Michael: Helping to chart a course to ensure the success of the Brink’s organization following The Pittston Company’s failed attempt to sell Brink’s in the 1980s. Fortunately, we were able to improve the company so well that we ended up selling off the assets of The Pittston Company and today, Brink’s is the company left standing. CEO Q: How did you do that? Michael: I also believe very strongly in focusing the company, establishing this focus early on was the key to success all these years. When I became president of Brink’s, Incorporated, we were minority owners in just about all of our operations throughout the world, and I wanted Brink’s to take control of it’s own destiny. I developed a strategy to apply new technologies, get control of our insurance, share best practices, and either buy out or sell shared interests, where appropriate, so that we could take hold of and control our future and the destiny of the company. The strategy took six or seven years to execute, but it allowed us to be where we are today. CEO Q: What education or prior experience helped you succeed at turning around Brinks? Michael: Before joining Brink’s, I worked for a small company called Armored Vehicle Builders, Incorporated. I worked there seven or eight years, and assumed the position of president at the age of 27. The company was located in Massachusetts but we sold armored and personal protection vehicles

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all over the world. This helped me develop a global mindset and helped me understand what it took to be a good general manager—all at a very young age. During this time, the company was in trouble and I had to learn to make payroll every week. I had to learn, very quickly, how to balance sales, marketing, operations, finance, and other aspects of the business. This is what laid a foundation for me and allowed me to have an impact when I came to Brink’s. CEO Q: What lessons did you learn on your way to becoming a CEO? Michael: The best lesson I’ve learned on my way to becoming a CEO is to always do the right thing, no matter what. You can’t be afraid to drive change as long as the interests of your employees, customers and company are at the forefront. Don’t be afraid. You can change and do anything, if you set your mind to it. Also, I’ve learned that teams win. If you understand where you are, where you have to go and can get the organization lined up in support of the direction, the organization—the team—is unstoppable. CEO Q: CEO?

What lessons have you learned as a

Michael: You have to set the tone and strategy, and stay positive—no matter what. There is always something positive to be gained, a lesson to be learned, even in big failures. Also, people are much smarter than we generally give them credit for, and I try to never forget that.

CEO Q: What are the key success factors for a CEO? Michael: Trust needs to be given to the people in your organization, but as a CEO, you have to earn the trust of your team and you have to do this every day. Also, you have to stay true to your ethical standards. People either have high ethics and standards or they don’t. These are lessons we learn early in life from our families and friends. If someone doesn’t share our high standards of ethics, there’s no place for them in the company. Period. CEO Q: What are the key challenges for a CEO? Michael: Focus. For a CEO, nothing is more valuable than time, and it’s important to understand your priorities so you can know how best to schedule your time and focus on the right things. You have to understand what you can and can’t do with your time. A CEO must have excellent communication skills. Obviously a CEO’s honesty and integrity must be above and beyond reproach, and you’d better have a lot of empathy for people. People are going to make mistakes; when this happens, my first question is always “did they learn from this?” Another key challenge for a CEO is stress management. This is a very stressful job. Many CEOs fail because the stress eats them up physically and mentally. As a CEO, if you can’t manage the stress, you’re not going to make it; you will fail. CEO Q: How did you overcome those challenges? Michael: I’ve been fortunate. For me, priorities are easy. I’ve always been good at prioritizing and managing my time wisely. As for ethics, I have my parents to thank because it’s probably from them that strong ethics are so well engrained in me. Managing stress, on the other hand, is a learned behavior. You’ve got to be able to take a step back, take a deep breath, and find ways to alleviate stress—ways that work for you. I do yoga and like to hike. I find these activities to be good stress relievers for me because they take me out of my stressful position, both mentally and physically. CEO Q: How do you manage the relationship with your board of directors?

Michael: Total transparency on all issues and open access to the entire management team are key. In today’s environment, which is vastly different from the environment when I first became CEO, there is a creative tension that’s necessary in the boardroom because of liabilities, Sarbanes-Oxley and the regulatory environment that continues to evolve. The only way to successfully handle these challenges is to be totally transparent so that board members have everything they need and want to do their jobs. Also, it’s important to recognize—and respect— that the board’s duties and responsibilities to the shareholders, as well as their personal liability, are at risk. Questioning and probing is their job; they need to query my decisions and actions to make sure I’ve considered all the angles. I can’t lose this perspective because I need for them to be part of the process. In today’s world, rather than tell board members the answers, you have to involve them in the problem, get their input, and evolve issues so you end up with a strong consensus on the board. Although you won’t always get everyone aligned on every issue, a strong consensus helps leverage the board’s value and ensure you are getting their wisdom and insight as you run a very complicated global business. CEO Q: How do you identify and develop your top performers? Michael: We have a formal review program that I established when I first took over as CEO of Brink’s. It’s a formal review process whereby we look at all of our top performers, evaluate their strengths and weaknesses, their skills and experience, and look at their current job and their next job so we can also determine the skills and/or experience they need. We do this from a succession planning perspective, looking at opportunities for those who are ready now and opportunities for those who will be ready the next three to five years and beyond. The entire process takes a full month of my time each year. I work closely with our head of Human Resources and take the recommendations to our board of directors. The board provides input and gives us perspective based on their own experience or what they see in other companies. Their queries are quite detailed; they want to know how we’re developing our people and the steps we’re taking to address the needs of Q4 / 2010 | www.ceoqmagazine.com

our people and the company, both now and in the future. We believe this is the most important thing we do because we’re only as good as our people. CEO Q: What do you look for in your successor? Michael: I look for a competent leader who is willing to question everything. It is important to have the confidence to review everything that’s already in place and ask questions. My successor must also have ethical standards that are unquestioned. He or she must have a strong work ethic and be willing to travel a lot as this is, after all, a global company. CEO Q: What advice do you give to rising CEOs? Michael: Teams win, individuals don’t. When you’re in school, you strive to be the best in your class, or when you join a company as a sales executive, you want to be the best sales executive. But when you become a senior leader, it’s no longer a competition. It’s about them, your team. It’s not about you anymore. CEO’s must understand that, otherwise they won’t be successful. Also, be yourself. A lot of people forget this and try to emulate someone else. Don’t do that; just be who you are. CEO Q: Do you admire another CEO or a leader (current or historical)? Why? Michael: There are many CEOs and leaders I admire. If I had to pick one, I’d say Fred Smith, the founder of Federal Express, who’s also a friend. Because he was an entrepreneur who started a company and took it from a small start-up to a global giant. He stayed there through all those evolutions. Most people don’t have the skills to manage a company through that degree of transition and change. Fred has all the traits of a good CEO. I also admire Bill Gates. He’s obviously successful, but he was also smart enough to know he had to hire professional business managers. Steve Jobs is another leader I admire. He was fired because he couldn’t manage a big company but he came back and achieved incredible success. CEO Q: Would you say luck has something to do with your success? If yes, how so? Michael: Yes; I was lucky to be born to great parents. They taught me a lot at a very young age. I

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believe your ethics and moral compass are formed at an early age, and I’ve been fortunate to have truly great parents. Also, regardless of the challenges I’ve faced in my career, I’ve always received support from my bosses. With my personality and aggressive efforts to do the right thing and get things done, it could have easily gone the other way; all it would have taken is one manager to hinder my progress, but I’ve been lucky. CEO Q: How do you manage organizational politics, and conflicting personalities, interests, and views? Michael: I believe in managing organizational politics and conflicts head-on. If you see a snake, in this case organizational politics, you have to address it instantly. Otherwise, another snake will crawl into a room, then a third and all of sudden there are snakes everywhere and you feel overwhelmed. Address the problem early and head on. In my experience, organizational conflict often occurs because everybody is trying to get their jobs done and they mean well, but they don’t always appreciate the job challenges others in the organization face. Everyone has a job to do but that doesn’t mean they understand what their coworkers do or their needs. I believe that, if people understand and respect other people’s jobs and their needs, you can resolve 90% of conflict situations. You have to want to resolve conflict, though, and that’s where communication and emotional intellect come in to play. If you’re not emotionally intelligent or aren’t a strong communicator, you’re not going to be able to deal with organizational conflict, or you may even cause conflict. CEO Q: How do you balance and manage various stakeholders’ interests? Michael: You start by always doing the right thing. If you do the right thing—what’s best for the company, what’s best for customers, and what’s best for employees—the numbers will take care of themselves. If you do the right thing, the stakeholders, including the communities in which we operate, will benefit and you’ll have the resources you need to make sure everyone is satisfied. In the event you have to take action that appears, in the short time, to be disadvantageous to a stakeholder, you have to be able to explain what you’re doing and why it’s important. That’s where emotional intellect and communication skills come into play. You’ll find

that when you explain things rationally and clearly, people will give you the benefit of the doubt, and when you’re successful or if you’re on the wrong path and make the necessary corrections, they’ll trust you more and appreciate your ability and willingness to make the tough calls. CEO Q: style?

How do you describe your leadership

Michael: I am direct; I am hands-on. I cannot get enough information—ever. I read company reports from every country, every sales person. I did that for Brink’s Home Security and BAX when those companies were under the Brink’s umbrella. Information gives me perspective. When I visit the field, armed with information, I can make sure that what I’m hearing and seeing supports what I’ve been reading. It allows me to give our managers new perspective and valuable insight to help them deal with personnel issues, operational problems, or other challenges. At this point in my career, I’m almost like a professor, trying to transfer all my knowledge to the senior managers of this company. CEO Q: How do you compete in a global business environment? Michael: You have to read; you have to do your homework. I watch for trends so I can anticipate changes and know how to maintain our discipline in the face of external pressures. I travel a lot, too. I visit with government officials, with customers, and with employees. I belong to the Business Roundtable, where I’m able to interact with other CEOs. All of this is like going to school, it’s an education I can apply to our business and to our company, and to help our leaders understand the global dynamics of our business and strategic direction. CEO Q: How do you compete in a recession? Michael: You batten down the hatches. Fortunately we have a strong balance sheet and a company that is less affected than many in a recession. We get after expenses and communicate with employees so they know what we’re doing and why. The recession will end and we want to come out of it a stronger, leaner company with more leverage.

CEO Q: How do you see the future of the U.S. economy and your industry? Michael: I believe the U.S. economy is going to be very difficult for the next three to five years. The economy will recover but, unfortunately, the job market isn’t going to recover as quickly because many jobs have been lost and it will take years before those jobs transition into other industries. It’s going to be painful. The government is broke so the amount of support, the safety net, is going to be severely strained. For our industry, in the U.S., our base industry is shrinking as banks pull back, close branches and reduce ATM servicing needs. But there are new lines of business that will enable Brink’s to continue to be the leader in our industry. The rest of the industry has been consolidating around us for the past 15 years and there’s not much consolidation left to go. Our competitors’ performance, however, is drastically trailing ours and I believe they’ll have a tough time making the technology investments that we have and developing the solutions they need to differentiate themselves as we have. CEO Q: What advice would you give the U.S. policy makers to help the economy and your business? Michael: They ought to start by adopting SarbanesOxley as we have, and they need greater fiscal discipline. They also need to understand how business works. CEO Q: Can you please share any life or personal lessons that other CEOs might relate to? Michael: The most important thing I’ve learned is that you can’t be a CEO and not make mistakes. What you have to do is recognize the mistake— publicly—and fix it. The sooner you do it, the better. CEO Q: Can you share with us a CEO humor? Michael: A new CEO is given three envelopes, numbered 1, 2 and 3, by his predecessor and told to open them in the event of disaster or financial crisis. When the first disaster occurs, the new CEO opens the first envelope and it says “blame your predecessor”. A year later, a second disaster occurs and the CEO opens the second envelope and reads, “blame the environment”. When the third disaster strikes, the CEO opens the envelope and reads, “prepare three envelopes.”

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CEO Awards Most Respected CEOs Mike Morris American Electric Power CEO Achievements AEP has endured the economic downturn without cutting employment. The CEO adopted hiring and salary freezes and spending restrictions.

Mike Morris CEO of American Electric Power (AEP) The Motivation CEO Company Profile Industry: Electric Power Generation Employees: 21,670 Revenues: $13.6B Market Cap: $17B

The company also drew on its lines of credit before the credit markets tightened and in April 2009, completed an equity offering of 69 million shares with net proceeds of $1.64 billion – the largest equity offering in history for the U.S. regulated electric utility industry. AEP has been a national leader in voluntarily reducing carbon emissions and advocating for a legislative solution to the climate change issue. The company installed the world’s first integrated carbon dioxide capture and storage system at a power plant and has been awarded $334 million in federal stimulus funding to help bring this technology to full commercial scale. CEO Bio Michael G. Morris, age 63, director since 2004. Elected president and chief executive officer of AEP in

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January 2004; chairman of the board in February 2004; and chairman, president and chief executive officer of all of its major subsidiaries in January 2004. A director of certain subsidiaries of AEP with one or more classes of publicly held preferred stock or debt securities and other subsidiaries of AEP. A director of Alcoa Inc. and The Hartford Financial Services Group, Inc. Mr. Morris was formerly a director of Cincinnati Bell, Inc. (2005-2008).

CEO Leadership “One of Mike’s hallmark leadership best practices is the respectful way that he treats employees throughout the organization. He puts in a tremendous amount of time responding to employee e-mails and letters, visiting and talking to employees throughout our 11 states, and using online blogs and face-to-face presentations to communicate. Mike

seeks out feedback from employees, answers difficult questions honestly and transparently, and creates deliberate opportunities for employees to feel comfortable sharing their thoughts, frustrations and recommendations. Mike also has the ability to set a compelling vision and energize employees around it. He takes on high profile, industryleading initiatives that create pride within the company and makes decisions in a timely manner.” - Gen Tuchow, VP HR AEP

CEO Insights I learned early in my career that managing through motivation and encouragement is the strongest way to get things done. I believe in listening to the diverse views of employees, respecting and valuing their unique ideas, and giving them the tools to do their jobs and be successful. It’s important that we prepare our internal talent for the next level of leadership, so we have set up a targeted development program and perform succession planning throughout the organization. I also rotate members of my executive team into different assignments every 18 months to broaden their experience. Our company has a strong focus on building relationships with all of our stakeholders, including employees, customers, regulators, policy makers, and organizations that don’t agree with us on certain issues. We have become more

agile by listening, learning and partnering with others to meet our challenges I’m trying to get to a comprehensive, system approach We must move forward and address the current inadequacies of our nation’s existing transmission infrastructure This transaction is significant because it completes the divestiture of assets... that did not align with our strong domestic utility operations. The divestitures leave us with an improved balance sheet and a strategic focus on our core utility business The energy industry is ready for renewables, but it faces four significant hurdles to succeed.. the first challenge is the location of renewables relative to their peak consumption... The second challenge is the intermittent nature of wind and solar power... The third challenge is the price.. And the fourth challenge is The regulatory maze lengthens that tangles up project development About AEP American Electric Power is one of the largest electric utilities in the U.S. delivering electricity to more than 5.2 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.

Q4 / 2010 | www.ceoqmagazine.com

CEO Awards Most Respected CEOs Muhammad Yunus Nobel Peace Prize Winner Grameen Bank A Special CEO Honor Transforming the life of millions of people; helping them fight poverty while making a social profit.

Muhammad Yunus CEO of Grameen Bank The Economist CEO and the recipient of the 2006 Nobel Peace Prize Company Profile Industry: Financial Services (Microcredit) Employees: 24,700 Revenues: $ 9.8B Market Cap: $ 6.7B

“[Muhammad Yunus’] ideas have already had a great impact on the Third World, and...hearing his appeal for a ‘poverty-free world’ from the source itself can be as stirring as that all-American myth of bootstrap success.” ––The Washington Post Former U.S. President Bill Clinton was a vocal advocate for awarding the Nobel Prize to Muhammad Yunus. In a speech given at University of California, Berkeley in 2002, President Clinton described Dr. Yunus as “a man who long ago should have won the Nobel Prize [and] I’ll keep saying that until they finally give it to him.” Professor Muhammad Yunus is internationally recognized for his work in poverty alleviation and the empowerment of poor women. He successfully melded capitalism with social responsibility to create the Grameen Bank, a microcredit institution committed to providing small amounts of working capital to the poor for self-employment.

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From its origins as an action-research project in 1976, Grameen Bank has grown to provide collateral-free loans to 7.5 million clients in more than 82,072 villages in Bangladesh and 97% of whom are women. The successful and innovative approach to poverty alleviation pioneered by Professor Yunus in a small village in Bangladesh has inspired a global microcredit movement reaching out to millions of poor women in a hundred countries throughout the world from rural South Africa to inner city Chicago. The unethical and risky derivative financial practices of many bankers proved toxic to their customers, employees and investors. What is sad is that the U.S. government proposed the creation of the “Bad Bank” to absorb all their toxic assets. US economists and government policy makers can learn few lessons from Muhammad Yunus by creating the “Good bank”. Not only it is a good socioeconomic goal to serve the underserved communities, it is also good for the investors. With its $9B collateralfree loans to 7.5 million clients and

amazing rate of 98% loan repayment rates (no western bank can compete with that rate), the Grameen bank could become the new model for banking and economic development. - Med Jones - President of International Institute of Management CEO Bio Born in 1940, Muhammad Yunus is a world famous Bangladeshi banker. Professor Muhammad Yunus received the Nobel Peace Prize in 2006 in Oslo, Norway, for his pioneering work in fighting global poverty through loans and other financial services for the poor. Microcredit involves the lending of small amounts of money to the world’s poorest people to start micro-businesses and move themselves away from poverty. He previously was a professor of economics where he developed the concepts of microcredit and microfinance. He is one of the founding members of Global Elders. Yunus also serves on the board of directors of the United Nations Foundation, a public charity created in 1998 with entrepreneur and philanthropist Ted Turner’s historic $1 billion gift to support United Nations causes. The UN Foundation builds and implements publicprivate partnerships to address the world’s most pressing problems, and broadens support for the UN. Yunus is the author of Banker to the Poor and a founding board member of Grameen America and Grameen Foundation.

have denied them those opportunities...I wanted to give money to people like this woman so that they would be free from the moneylenders to sell their product at the price which the markets gave them - which was much higher than what the trader was giving them Sometimes I felt that nobody was paying any attention, like I’ve been screaming and nobody’s hearing me. Now suddenly this prestigious [Noble Peace] prize comes, and you get a feeling that you can whisper, the whole world listens. This is your time to say what you wanted to say Poverty is a threat to peace. It is breeding ground for political turmoil

I was teaching in one of the universities while the country was suffering from a severe famine. People were dying of hunger, and I felt very helpless. As an economist, I had no tool in my tool box to fix that kind of situation I went to the bank and proposed that they lend money to the poor people. The bankers almost fell over...

My greatest challenge has been to change the mindset of people. Mindsets CEO Insights play strange tricks on us. We see things the way our minds have instructed our We have created a society that does eyes to see not allow opportunities for those people to take care of themselves because we

Q4 / 2010 | www.ceoqmagazine.com

CEO Awards Most Respected CEOs Paul Diaz Kindred Healthcare CEO Achievements Paul Diaz is the President and Chief Executive Officer of Kindred Healthcare, Inc., one of the largest providers of healthcare services in the United States.

Paul J. Diaz CEO of Kindred Healthcare Inc. The Healthcare CEO Company Profile Industry: hospitals and long-term healthcare facilities Employees: 39,500 Revenues: $4B Market Cap: $0.5B

Kindred is a New York Stock Exchange (NYSE) listed company with revenues in excess of $4 billion and over 54,000 employees in 41 states. Fiscal 2009 was a year of solid operational and financial performance at Kindred Healthcare, despite a difficult economic, regulatory and reimbursement environment. Revenue gains in each of its three operating divisions: Hospitals – 5%, Nursing and Rehabilitation Centers – 3% and Peoplefirst Rehabilitation – 11%. Overall revenues of $4.3 billion were 4% ahead of last year In the past two years, Modern Healthcare magazine named Mr. Diaz one of the 100 Most Powerful People in Healthcare. In 2008, Modern Healthcare named him one of the top 25 Minority Executives in Healthcare. In addition, in both 2008 and 2009 Hispanic

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magazine named Mr. Diaz one of the 25 Best Latinos in business. CEO Bio Mr. Diaz is an attorney and accountant who earned a bachelor’s degree in Finance and Accounting from American University’s Kogod School of Business and a law degree from Georgetown University. Mr. Diaz serves on the Board of Directors of DaVita (NYSE: “DVA”), and the Board of Visitors of Georgetown University Law Center. He was formerly on the Board of PharMerica Corporation (NYSE:PMC), the Board of the Bloomberg School of Public Health at Johns Hopkins University, and the Board of Trustees and Executive Committee of the Suburban Hospital Healthcare Systems in Bethesda, Maryland.

CEO Insights Our strong financial results were driven by continued improvement in our people, quality and customer

services goals and reinforced our Management Philosophy: If we take care of our people, and focus on quality and customer service, our business results will follow I have been extremely lucky over the years, primarily in having good mentors who looked after me and helped me get stronger My advice for the up and coming is to broaden your skill-sets, learn the operations, the finance and the customers [relationship management] We often approach our job as a silo. To have a broad-based sense of what we do is very important Our mission is to promote healing, provide hope, preserve dignity and produce value for each patient, resident, family member, customer, employee and shareholder we serve Our investments in staffing, training and the modernization of our physical plants are also paying off, as we continue to enhance our capabilities to serve shortstay rehabilitation patients and higher acuity longer term residents About Kindred Healthcare Kindred operates a diverse blend of health care service businesses including long-term acute care hospitals, skilled nursing facilities and contract rehabilitation sites in more than 600 locations across the United States.

Q4 / 2010 | www.ceoqmagazine.com

CEO Awards Most Respected CEOs Robert Dutkowsky Tech Data Corporation CEO Achievements

Robert Dutkowsky CEO of Tech Data Corporation The Sales CEO Company Profile Industry: Computers Wholesale Employees: 7,600 Revenues: $23B Market Cap: $1.84B

In January 2006, Tech Data - the world’s second largest distributor of IT products—named technology industry veteran Dutkowsky as its new CEO and Board Member in October 2006. Dutkowsky’s first order of business was to oversee the final stages of Tech Data’s European restructuring and business optimization plans. He also turned his eye toward expansion and introduced a new corporate strategy of execution, diversification and innovation that would be the foundation for Tech Data’s future success. Very quickly, the company was once again positioned for profitable growth throughout all regions in which it operates. His strategy paid early dividends. At the conclusion of Dutkowsky’s first full fiscal year with the company, Tech Data generated a record $23.4 billion in net sales with 80 percent increase in net income. During the economic challenges of 2009, Robert’s strategy of execution, diversification and innovation to positioned Tech Data, its customers and its vendor partners for future growth. Despite declines in net sales experienced across the entire IT industry, Tech Data has created

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new efficiencies, enhanced services levels and broadened its solutions resulting in increased profits. Tech Data made a number of acquisitions expanding its product offering, customer portfolio, technical capabilities and geographic reach. These included the acquisition of certain assets of Compumedi, a leading IBM distributor in Spain; certain assets of Investronica’s Portuguese IT distribution operation; certain assets of Man and Machine’s German-based Autodesk distribution operations; and certain assets of Ireland’s sole Autodesk distributor Cadco. In the Americas, Tech Data announced several distribution agreements, further diversifying its solutions portfolio. These new and expanded vendor partnerships include Force10 Networks, Brocade’s IP networking solutions, Pelco video surveillance solutions, Sharp LCD TVs and more. For its last fiscal year (reported Jan. 31, 2009), Tech Data generated a record $24.1 billion in net sales. CEO Bio Robert

Dutkowsky

oversees

all

aspects of the company’s extensive worldwide IT products distribution operations. He joined Tech Data in 2006 and has over 30 years experience in the IT industry including senior management positions in sales, marketing and channel distribution with leading manufacturers and software publishers IBM, EMC and J.D. Edwards. Dutkowsky began his IT career in 1977 when he joined IBM as a salesman. He spent 20 years with IBM, where his rise through the ranks included various sales and marketing and general management positions, and tenures as director, Software and Services; vice president, Product Marketing; executive assistant to former IBM CEO Lou Gerstner; vice president, Distribution – IBM Asia/Pacific; and vice president, Worldwide Sales and Marketing – RS/6000 product line. In 1997, Dutkowsky joined EMC as executive vice president, Markets and Channels before being promoted to president, Data General in 1999. During his time at EMC, the company’s revenue grew from $2 billion to $9 billion. In 2000, Dutkowsky was named president, chairman and CEO for GenRad, leading the company to a successful merger with Teradyne, a test equipment manufacturer for semiconductor, electronics and network systems companies. Later, in 2002, Dutkowsky served as chairman, president and CEO of J.D. Edwards until the company integrated with PeopleSoft. Immediately prior to joining Tech Data, Dutkowsky was chairman, president and CEO of Egenera, Inc., a utility computing company based in Marlboro, Mass. He serves on the board of directors for SEPATON, a data storage and protection manufacturer. He also is a member of the board of directors for the United Way of Tampa Bay, the Tampa Bay Rays Foundation and the advisory board of the University of South Florida Business School. Dutkowsky earned a bachelor’s degree in labor and industrial relations from Cornell University. He also is a recipient of the 2000 Ellis Island Medal of Honor recognizing distinguished American citizens

CEO Insights If you’re hiring sales guys you want to hire guys that

make things happen. The (IBM HR guy), bless his heart, (asked) “What do you want to do when you grow up?” I said, “I want to be President of IBM...And he said, “If you want to do that, you want to be a salesman. The last six guys who ran IBM started out as salesmen...I said, “OK, I’m going to go be a salesman... IBM probably hired 50,000 people that year. How did I get the right answers at the right time?

Friday night my wife would say, “Can we go to the movies this weekend? Did you sell anything this week?” It was real commission, hand-to-mouth kind of stuff. IBM has a real formalized development program. Every employee has a development plan. Gary (My mentor) said, “You have a lot more skill than to be a marketing representative for IBM. You need to go into management...We’ve decided that you’re going to move on... You were being groomed for your next job, and your next job, and your next job. I was working for Lou Gerstner at the time. He was chairman of IBM, and he came into my office and asked, “Do you have any international experience?” I said, “Yes, I lived in Nebraska once.” I thought that was kind of cute, but he didn’t laugh at that. In typical Lou fashion, he said “In 90 days you will be living in Tokyo. Get your wife and family ready for this.” About Tech Data Tech Data Corporation (NASDAQ GS:TECD) is one of the world’s largest distributors of technology products from leading IT hardware and software producers. Tech Data serves more than 125,000 IT solution providers in over 100 countries. Every day, these resellers depend on Tech Data to costeffectively support the technology needs of end users, including small and medium businesses (SMB), large enterprises and government agencies.

Q4 / 2010 | www.ceoqmagazine.com

CEO Awards Most Respected CEOs Steve Jobs Apple A Special CEO Honor

Steve Jobs Founder and CEO of Apple Inc. The Innovation CEO Company Profile Industry: Personal Computers Employees: 34,300 Revenues: $57B Market Cap: $236.4B

A visionary, charismatic, and creative CEO who proved all his past enemies wrong. His vision and pioneering innovations transformed the way we use computers and phones and changed the industry forever. He gave the world, the Macintosh GUI, Toy Story, iPod, iPhone, iPad, MacBook Air and iTunes. With his return to Apple, he turned the company around to become one of the best performing and most valuable companies on Wall Street. Jobs is listed as either primary inventor or co-inventor in over 230 patents. He earned a salary of $1 per year since he returned to Apple as the CEO in 1997. During that time, he also did not sell a single share of Apple stock even though his holdings of Apple are estimated to be over $1.1 billion (5.5 million shares). It is believed that Steve Jobs accounts for $20 billion or more of Apple’s market value. CEO Bio Steve Jobs is the cofounder and CEO of Apple Inc. In the late 1970s, Jobs and his team designed, developed and marketed one of the first commercial lines of personal computers, the Apple II series.

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After losing a power struggle with the board of directors in 1985, Jobs left Apple and founded NeXT, a high-end computer. Apple’s subsequent 1996 buyout of NeXT brought Jobs back to the company he cofounded. Jobs also served as the CEO of Pixar Animation Studios. He became a member of the board of The Walt Disney Company in 2006, following the acquisition of Pixar by Disney. In 1986, Jobs acquired the computer graphics division of Lucasfilm Ltd which was spun off as Pixar Animation Studios. He remained the CEO until its acquisition by the Walt Disney company in 2006. Jobs is also a member of Disney’s Board of Directors and owns approximately 138 million shares of Walt Disney (DIS) stock that he received from the Pixar Animation Studios sale. CEO Challenge Could history repeat itself? In the early years of Apple, the company had a superior graphical operating system (OS). Jobs lost the OS market to Microsoft by insisting on selling a closed system. On the other hand, Microsoft partnered with PC manufacturers and dominated the global OS market even when it had an inferior OS at that time. Today, Apple’s iPhone faces the same challenge from Google’s Android. Will Steve Jobs

stick to the old strategy or will he preempt Google and protect his smart phones market dominance? Since Jobs is one of the most famous and most covered CEOs in the media, we chose to focus less on his biography and share more of his insights with our readers.

CEO Insights A lot of companies have chosen to downsize, and maybe that was the right thing for them. We chose a different path. Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets Be a yardstick of quality. Some people aren’t used to an environment where excellence is expected Innovation distinguishes leader and a follower

between

Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma. Don’t let the noise of other’s opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary. Almost everything – all external expectations, all pride, all fear of embarrassment or failure - these things just fall away in the face of death, leaving only what is truly important. Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart

We do not say anything about future a products. We work on them in secret, then we announce them

Pretty much, Apple and Dell are the only We’re the last guys left in this industry ones in this industry making money. They who can do it, and that’s what we’re make it by being Wal-Mart. We make it about by innovation Clearly iPhone plus iPod touch have Sometimes when you innovate, you created a new class of gaming. It’s make mistakes. It is best to admit them surprising how good some of them are. quickly, and get on with improving your ... Console games the software is $30 or $40 a game. It’s cheaper on iPhone, so other innovations the market has exploded To turn really interesting ideas and fledgling technologies into a company We discovered something -- people are that can continue to innovate for years, it going into apps. They’re not just going onto to websites requires a lot of discipline

Q4 / 2010 | www.ceoqmagazine.com

CEO Awards Most Respected CEOs Timothy Manganello BorgWarner CEO Achievements

Timothy Manganello CEO of BorgWarner Inc. The Globalization CEO Company Profile Industry: Auto Parts Manufacturing Employees: 12,500 Revenues: $4.4B Market Cap: $5.0B

2009 was an extraordinary year for BorgWarner and the global automotive industry. Due to an unprecedented economic downturn, Tim faced serious challenges such as managing cash flow, fighting to secure liquidity, and maintaining profitability for BorgWarner. He worked to develop the financial capability within BorgWarner to emerge from the recession as a stronger company. Tim led BorgWarner with a strategy focusing on operational excellence and efficiency. He was able to unify people from the shop floor to the boardroom re-focusing on the financial discipline necessary to be successful in the crisis. He anticipated and reacted quickly to market conditions, right-sizing the business operations to achieve positive cash flow and earnings for the year. He targeted an aggressive 20% decremental margin on the change in operating income versus the reduction in sales and was successful in achieving this target. Tim strengthened the financial structure of the company with a successful convertible bond offering during a time when the market was

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reacting unfavorably to the auto industry. BorgWarner Net Income Growth (LFY): Turnaround from loss of -35.6M to profit of +27M despite major decline in revenues In a very difficult year for the global auto industry. The strategies that the CEO implemented allowed BorgWarner to regain profitability in the third quarter of 2009 and to be one of two automotive companies to maintain an investment grade rating without sacrificing BorgWarnerâ&#x20AC;&#x2122;s future in the area of new business or R&D spending. CEO Bio Timothy M. Manganello has been chairman and chief executive officer of BorgWarner Inc. since June 2003. Mr. Manganello began his career in the automotive industry in 1973. He was named to his current position in February 2003, after having served for one year as president and chief operating officer. Prior to holding the position of COO, he was executive vice president of the company and served as president and general manager of BorgWarner TorqTransfer Systems from January

1999 to 2002. During his career at BorgWarner, he has held senior management positions in operations, sales, and business development. Before joining BorgWarner in 1989, Mr. Manganello held product engineering management positions at Chrysler Corporation from 1973 to 1981, and sales management positions at PT Components-Link Belt from 1981 to 1988. A resident of Bloomfield Hills, Michigan, Mr. Manganello holds a bachelor’s degree and master’s degree in mechanical engineering from the University of Michigan. He also completed the Advanced Management Program at Harvard Business School and is a graduate of the Chrysler Institute program. He is a member of the board of directors of Bemis Co., Inc. (NYSE), and the Detroit Branch Chairman of the Federal Reserve Bank of Chicago. He is also a member of the University of Michigan College of Engineering’s National Advisory Committee; and the Chairman of the Executive Committee of the Board of Trustees for the Manufacturer’s Alliance/MAPI.

CEO Insights We are successful because we have leading technology, we have strong focus on financial discipline, and we have broad customer base Consumers want better fuel economy and reduced emission in every region of the world and these needs are driving demands for BorgWarner’s leading power train technologies BorgWarner Inc has become a de facto European company as employees have increased in Europe while declining in North America We are bringing advanced technology to

China. We would rather be the first one into China with new technology, and gain the first-mover advantage We will do an acquisition that will bring in new technology, or more diversified customer base, or put us in a part of the world that is a growing one...Most of our acquisitions will be done globally, ...We do an acquisition in Japan to begin business with Toyota We figure that we can come up with the best technology solutions to include the economy and emissions. The OEMs would want to do business with BorgWarner We have three operating principles, which are based on BorgWarner’s powerful or lasting competitiveness in the world. Firstly, we have set up plants in different parts of the world to get closer to our customers and to meet their demands better. Secondly, when we are unable to satisfy our customers in an area due to economic or other factors, we will transfer some products to the more competitive manufacturing bases, such as India and China. Thirdly, to boost its global competitiveness, BorgWarner will encourage its India and China plants to serve customers from other countries and regions. For examples, a BorgWarner’s heat energy plant in China is providing products directly to the plants of Ford South Africa and American Chrysler, bypassing the BorgWarner’s plants in the U.S. or other countries and regions

Q4 / 2010 | www.ceoqmagazine.com

CEO Awards Most Respected CEOs Tony Earley DTE Energy CEO Bio Tony (Anthony) F. Earley, 60, has been chairman and chief executive officer of DTE Energy (NYSE: DTE), a Detroit-based diversified energy company since 1998. Tony Earley CEO, DTE Energy The Smart Energy CEO Company Profile Industry: Electric Utilities Employees: 10,244 Revenues: $8.3B Market Cap: $8B

DTE Energy owns Detroit Edison, an electric utility serving 2.2 million customers in Southeastern Michigan and Michigan Consolidated Gas Company (MichCon), a natural gas utility serving 1.3 million customers in more than 550 communities throughout Michigan. DTE Energy also owns several nationwide non-utility companies engaged in providing energy services to large industrial customers, the transportation and storage of fuels such as natural gas and coal, energy trading and the development of unconventional gas resources. Earley is chairman of the Edison Electric Institute (EEI), the trade association of investor utilities. In this role he is actively involved in the development of national policies on energy, the environment and climate change issues. As a former Chair of the Nuclear Energy Institute, he has played an

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active role in revitalizing the nuclear industry in the United States. Earley joined Detroit Edison as president and chief operating officer in March 1994. From 1989-1994, Earley served as president and chief operating officer of the Long Island Lighting Co. (LILCO), an electric and gas utility in New York. Prior to 1989, he served LILCO in several other positions, including executive vice president and general counsel. Earley joined LILCO in 1985 from the law firm of Hunton & Williams, where he had been a partner in that firmâ&#x20AC;&#x2122;s energy and environmental team. Earley earned a bachelor of science degree in physics, a master of science degree in engineering and a law degree, all from the University of Notre Dame. He served as an officer in the United States Navy nuclear submarine program where he was qualified as a chief engineer officer. Earley serves on the board of directors of Ford Motor Company,

MASCO Corporation, the Nuclear Energy Institute, Business Leaders for Michigan (formerly Detroit Renaissance), the Detroit Zoological Society, United Way for Southeastern Michigan and Cornerstone Schools. He is on the Department of Energy’s Electricity advisory board, the advisory board for the College of Engineering for the University of Notre Dame and the listed member advisory board for the New York Stock Exchange.

CEO Insights DTE Energy will receive $83 million from the U.S. Department of Energy to accelerate its SmartCurrents program over the next two years. The grant will be matched by DTE Energy and its technology partners. We estimate the accelerated startup of the SmartCurrents program will result in the creation of 700 deployment and construction jobs for IT contractors and overhead linemen, and 350 permanent positions for suppliers to this effort. This estimate does not include second tier or pull-through opportunities created with an increase in local production and commercial growth of this technology. There are environmental benefits, too. By reducing our vehicle use related to meter reading, we’ll also cut our carbon emissions and fuel consumption.” The combined effect of our $3.4 billion investment, when the projects are fully implemented, will create thousands of jobs, including higher paying career opportunities for smart meter

manufacturing workers, make the grid more reliable and empower consumers to cut their electricity bills. We estimate these improvements will reduce electricity demand by 1,400 megawatts, and put us on a path to get 20 percent or more of our energy from renewable resources by 2020 We believe diversity isn’t only about race or gender. It’s about understanding and embracing the unique differences, talents and perspectives of employees, customers and suppliers. We believe that a commitment to diversity is a commitment to the success of our business... Through our Supplier Diversity Initiative, we seek relationships with businesses that are small, owned by women, or minorities and/or do business in the HUB Zone The SmartCurrents program is DTE Energy’s contribution to the nation’s Smart Grid, which uses the latest technologies across the country’s electric system to allow consumers to make choices that save them money and improve the environment About DTE Energy An integrated energy company, providing gas and electric utility services to 2.7 million Michigan homes and businesses, and energy-related services to businesses and industries nationwide. The largest operating subsidiaries are Detroit Edison and MichCon. Together, these regulated utility companies provide electric and/or gas services to more than three million residential, business and industrial customers throughout Michigan. Non utility business include Coal, rail, pipeline, gas storage, energy trading, gas production, biomass, and other power and industrial projects. Q4 / 2010 | www.ceoqmagazine.com

CEO Awards Lessons from the Most Respected CEOs Selecting the right executive is probably the single most important decision any company can make. While most companies have a formal list of CEO’s selection criteria, they often misplace the weight of each criterion when evaluating individual candidates. Typically, companies engage an executive search firm and rely on it to find the right person. Many times this does not result in the success that the company anticipates. Most executive search firms will send only what they consider “safe” candidates for the company to accept. Usually, the focus is placed on criteria such as cultural fit, years of industry experience and education. While these are helpful indicators of the candidate’s abilities, our research findings has taught us that many of the criteria used to qualify the candidates are less important than what the company or the recruiters think. Top CEOs come from many diverse personal, educational and professional backgrounds. After researching more than 1,000 CEOs of global companies, and looking at their educational and professional backgrounds, we came to the conclusion that selecting a successful CEO boils down to three criteria; the candidate’s decision-making abilities, leadership skills, and personality strengths. All other factors are less important and in some cases proven irrelevant, as demonstrated by the list. The CEO’s Critical Success Factors A strong multi-dimensional decision-making ability is critical to enable the CEO to navigate the continuously changing internal and external forces in a complex and uncertain competitive environment. The CEO constantly evaluates and chooses between alternative strategic and tactical courses of actions, while considering the decision constraints and potential risks. Our decade-long research is full of examples of CEOs who were brought from outside the company, outside the industry, and sometimes even outside the country. Their results were far superior to their predecessors, who had

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all the relevant business, operational and cultural information. Leadership ability is critical to the execution of the strategy. The CEO must be able to balance and influence the complex organizational relationships and sometimes conflicting stakeholders’ interests. Relationship management with the board, government, public, clients, employees and their power centers is a key difference between a successful and unsuccessful implementation of the business strategy. None of the researched CEOs could have succeeded or scaled their growth to a global level without acquiring and aligning the strong support of their professional networks, business partners and executive teams. Almost all CEOs attribute their success to hiring, developing or motivating top talents. Our research has examples of some of the most brilliant CEOs who failed due to their lack of relationship management skills or due to a strong opposing political environment. Personality strengths such as ambition, drive, resilience, and the ability of the executive candidate to manage extremely heavy workloads and stress are critical for the CEO success. Leading a business organization is a highly competitive and demanding race. The scope of work, scale of responsibility, information overload, and number of demanding relationships can be overwhelming. Most CEOs perform well during good business conditions. Few can do well in stressful times. Even less are able to shine during a crisis. The research of the “Most Respected CEOs” has taught us new and important lessons. The following is a partial list of the research findings that challenged the many common misconceptions about the ideal CEO’s personal and professional profiles. 1. Culture or social background does not matter as much as most companies think. Carlos Ghosn, CEO of Nissan Motor, and one of the most

successful CEOs of all time, proved that you do not need to know the culture or speak the language to run one of the largest companies in the world. Possessing the right leadership skills can turn around a foreign company with a foreign culture in a foreign country. It is worth noting that when Ghosn took the CEO position at Nissan he did not even speak Japanese. The profile of David Blair, CEO of Catalyst Health Inc taught us that age and years of experience do not matter as much as most companies think. David is one of several examples of young CEOs who led their companies to very high growth levels. Catalyst is one of the fastest growing companies with 1,000 employees producing more than 3 billion dollars in revenues. Paul Diaz, CEO of Kindred Healthcare Inc, Robert Dutkowsky the CEO of Tech Data, and several others taught us that the CEO’s academic education does not matter as much as the recruiters think. On the other hand, the CEO’s professional training and experiential development is critical to the success of the CEO and the company. Contrary to popular views, most successful CEOs did not graduate from Ivy League universities; many of them do not have MBA degrees. Some of the most successful CEOs have law, technical, physics, or HR education. Christopher Connor, CEO of The SherwinWilliams Company, and John Wren, CEO of Omnicom, taught us that hiring top talent is the ultimate competitive advantage. John Stumpf, CEO of Wells Fargo & Company, taught us that a CEO who admits mistakes and does not sugarcoat or omit bad news is a CEO to trust. Joseph Saunders, CEO of Visa Inc., taught us that advocacy and lobbying are critical to the success of the company in a changing regulatory environment. Robert Dutkowsky, CEO of Tech Data Corporation, taught us that having good mentors at work is critical to the performance of the executive and the company. The success of David Simon, CEO of Simon Property Group, is attributed to his ability to identify and negotiate M&A opportunities as a growth strategy. Eric Schmidt, CEO of Google Inc, taught us that every day brings new challenges. The CEO’s job is to keep things focused.

10. We believe the success of Tony F. Earley, CEO of DTE Energy, is attributed in a substantial part to his professional and government network. 11. Jeffrey Joerres, CEO of Manpower Inc, taught us that it is critical for the CEO to get out of his office and meet people face to face. The CEO must stay connected with his people so that they know where the challenges lie within the organization. 12. The lesson we learned from Matt Rubel, CEO of Collective Brands, Inc., is that the business strategy, regardless of the economic climate, is to remain focused on the consumers.They hold the key to any retailer or brand success. 13. Michael Dan, CEO of Brinks Inc, taught us that the three top skills needed for a CEO are focus, communication skills, and stress management. 14. The success of Timothy Manganello, CEO of BorgWarner Inc, is based on his strategy to seek technology as a competitive advantage and his ability to think and act in a global framework. This enabled him to diversify the company’s portfolio of investors, products and markets which was the key to overcome the worst U.S. economic crisis to hit the auto industry. 15. Mike Morris, CEO of American Electric Power (AEP), taught us that motivation and encouragement is the best way to get things done through your people. 16. The most important lesson any executive can learn from Steve Jobs, CEO of Apple Inc., is that innovation leadership is the best value creation strategy. He also taught us that the most successful CEO is not the one who makes fewer mistakes, but the one who quickly learns from them and moves on. 17. Muhammad Yunus, CEO of Grameen Bank, taught us that the greatest challenge of the CEO is to change the mindset of the stakeholders, because mindsets play strange tricks on people. About CEO Awards. CEO Awards is a partnership project with the International Institute of Management. IIM is a management best practices research and education institute. IIM provides CEO and executive support services, strategic planning retreats and custom corporate training courses for the Global Fortune 1000 companies and governments. To learn more, please visit www.iim-edu.org Q4 / 2010 | www.ceoqmagazine.com