Core Principle

CEORater believes a CEO's primary responsibility is to generate returns for shareholders that outperform the broader market. Our core metrics are designed to measure this outperformance, or "alpha," in a clear and objective way.

Key Performance Metrics:

• TSR During Tenure: The total return of a stock to an investor, including stock price appreciation and dividends, over a specific period. We calculate TSR for the entirety of a CEO's tenure.
• TSR vs. QQQ: Measures the CEO's TSR during their tenure compared to the QQQ Total Return over the same period. It is calculated by subtracting the Total Return of the Invesco QQQ Trust (a proxy for the NASDAQ 100 Index) from the CEO's "TSR During Tenure" over the same period. A positive value indicates the CEO has outperformed the market.
• Avg Annual TSR: "TSR During Tenure" divided by that CEO's tenure.
• Avg Annual TSR vs. QQQ: Measures the CEO's Average Annual TSR compared to QQQ Average Annual Total Return over the same period. A positive value indicates outperformance against the market.

AlphaScore:

The AlphaScore is CEORater's proprietary 0-100 rating of a CEO's performance, ranked relative to their NASDAQ 100 peers. A higher score indicates superior, risk-adjusted value creation.

Methodology:

The AlphaScore is a blended metric designed to balance the total magnitude of outperformance with the consistency of that outperformance. It is calculated in two steps:

1. Percentile Ranking: Each CEO is ranked against all other NASDAQ 100 CEOs on two key metrics:
   • The percentile rank of their total TSR vs. QQQ
   • The percentile rank of their Avg Annual TSR vs. QQQ.
2. Blended Score: The AlphaScore is the average of these two percentile ranks, resulting in a single, comprehensive score from 0 to 100.

This methodology ensures that the AlphaScore rewards both long-term value creation and the year-over-year skill required to outperform the market.