Wall Street Doesn’t Focus Enough on Impressive CEOs, Says Jim Cramer
CNBC’s Jim Cramer on Thursday said that Wall Street doesn’t focus enough on impressive leaders in the enterprise, and that new CEOs can change a company’s valuation despite negative macro trends. Cramer noted that while the market is currently fixated on the tech sector, it’s worthwhile to consider how CEOs outside of tech have been able to pull off turnarounds that were previously doubted.
Cramer highlighted several CEOs who have managed to earn back investors’ trust, including Kevin Hochman, who took the helm at Brinker International and has led the company to success with a simplified menu, a better value proposition, and advertising strategy. He also praised Brian Niccol, the CEO of Starbucks, who has led a successful turnaround at the company, and Larry Culp, who transformed General Electric by splitting it into three businesses.
Cramer also pointed to Bracken Darrell, the CEO of VF Corp, who was able to right the ship at the clothing company by selling off popular brands and using the proceeds to report a strong quarterly earnings.
“In some – not all – situations, that is all that matters if you want to make huge amounts of money,” Cramer said. “The transcendence of the enterprise thanks to the leadership of a great CEO.”
