Some gamblers think that the key to winning in horse races is to bet on the jockey. The idea is that a great jockey can make a not-as-great horse perform better, while even a fast horse can lose when its rider is mediocre.
This concept has also carried over to the business world. Investors feel more comfortable buying shares of a company with a strong CEO at the helm.
But how can you determine whether a CEO is strong or not? One key thing to look for is the stock's total return during the CEO's tenure. Another is the CEO's approval among employees. A great CEO will lead a company to deliver exceptional total returns while winning the trust and admiration of the company's staff.