Skip Links

Network World

  • Social Web 
  • Email 
  • Close
Send to a friend Feedback

Exec power - slipping down

Readers downgrade CEO power, our annual survey finds.
By Julie Bort , Network World , 12/27/2004
  • Share/Email
  • Comment
  • Print

For the fifth year running, Cisco's John Chambers grabs the top spot in our annual Powerometer survey, a reader ranking of CEO power. This year, Microsoft's Steve Ballmer, Intel's Craig Barrett, IBM's Sam Palmisano and HP's Carly Fiorina fill out the remaining Top 5 slots, according to 250 readers surveyed.

Palmisano's relative power has increased this year, as has Fiorina's. While respondents lowered both CEO's Power Ratings, Palmisano inched up to No. 4 this year, while Fiorina scored high enough to climb into the Top 5. These two leaders' chameleon-like abilities to adapt to changing industry dynamics are serving their respective companies well, respondents say. (See How we did it.)

SBC's Ed Whitacre, 3Com's Bruce Claflin and Sun's Scott McNealy also made significant moves up the rankings this year. Whitacre earns credit for leading SBC to big deals, such as a landmark managed VoIP services contract with Ford Motor and a Wi-Fi hot-spot agreement with UPS for its retail outlets. Claflin gets applause for combating Cisco on price, and McNealy wins credit for Sun's steady stream of new products.

Three CEOs slid down by three or more ranks in 2004: EMC's Joe Tucci, AT&T's David Dorman and Verizon's Ivan Seidenberg. Tucci's slide reflects reader uncertainty about the company's strategic direction. Dorman's fall results from continued uncertainty over AT&T's long-term viability. Seidenberg's drop was Whitacre's gain - as the two nearly swapped positions from last year.

Three new CEOs graced the survey this year, each achieving the same rank as their companies did in our related Powerometer survey of vendor power. Dell's Kevin Rollins, new to the survey, landed at No. 8 compared with the No. 4 rank held by his predecessor, Michael Dell, in 2003. Symantec's John Thompson entered at No. 15, while McAfee's George Samunek made his debut at No. 18.

2004 Power Rating
Using a scale of 1 to 100, with 100 representing the highest level, 250 readers crowned Cisco CEO John Chambers as the most powerful vendor CEO.
Rank 2004 2003 CEO Power Rating % change
2004 2003
1 1 Cisco’s John Chambers 67.4 69.7 -3.3%
2 2 Microsoft’s Steve Ballmer 63.0 68.5 -8.0%
3 3 Intel’s Craig Barrett 57.0 59.4 -4.0%
4 5 IBM’s Sam Palmisano 55.1 57.9 -4.8%
5 7 HP’s Carly Fiorina 50.7 52.6 -3.6%
6 6 Oracle’s Larry Ellison 50.2 53.5 -6.1%
7 9 Sun’s Scott McNealy 49.6 49.0 1.2%
8 N/A* Dell’s Kevin Rollins 48.1 N/A N/A
9 12 3Com’s Bruce Claflin 47.3 44.7 5.8%
10 14 SBC’s Ed Whitacre 46.9 43.3 8.3%
11 8 AT&T’s David Dorman 46.4 50.2 -7.5%
12 N/A** Nortel’s Bill Owens 45.9 N/A N/A
13 10 Verizon’s Ivan Seidenberg 45.6 47.0 -2.9%
14 15 Sprint’s Gary Forsee 44.1 42.2 4.5%
15 N/A*** Symantec’s John Thompson 43.6 N/A N/A
16 N/A**** Computer Associates’ Kenneth Cron 42.5 N/A N/A
17 13 EMC’s Joe Tucci 42.2 43.9 -3.8%
18 N/A*** McAfee’s George Samenuk 41.8 N/A N/A
19 19 Novell’s Jack Messman 41.7 37.4 11.5%
20 20 MCI’s Michael Capellas 41.0 36.0 13.9%
N/A: New to the survey in 2004.
*Michael Dell, former CEO, ranked No. 4 in 2003.
**Frank Dunn, former CEO, ranked No. 11 in 2003.
***This is the first year in the survey for the company and its CEO.
****Sanjay Kumar, former CEO, ranked No. 16 in 2003. Since the survey, John Swainson has been appointed CEO.
Power gains
Gutsy maneuvering accounts for the uptick in Power Rating for these six CEOs.

CEO Rank 2004 2003 Increase
SBC’s Ed Whitacre 10 14 4
3Com’s Bruce Claflin 9 12 3
HP’s Carly Fiorina 5 7 2
Sun’s Scott McNealy 7 9 12
IBM’s Sam Palmisano 4 5 1
Sprint’s Gary Forsee 14 15 1
Power losses
These four CEOs have slid down the ranks as network executives struggle to understand their product/service strategies.

CEO Rank 2004 2003 Decrease
EMC’s Joe Tucci 17 13 4
AT&T’s David Dorman 11 8 3
Verizon’s Ivan Seidenberg 13 10 3
Nortel’s Bill Owens 12 11 1
Of good repute
When your organization is selecting strategic vendors, how important is the CEO’s reputation?

SOURCE: NETWORK WORLD

 

How we did it

With the help of market research firm Research Concepts, we asked 250 readers to rate the power of 20 network vendors and their CEOs. We used a scale of 1 to 100, with 1 representing the low mark and 100 the high. We obtained the Power Rating by calculating the mean.

We then used the Power Rating to rank the companies and individuals from highest to lowest rating. This allows us to examine two key measures of power: objective and relative. We determine objective power by comparing the current Power Rating with the previous one. To measure relative power, we examine how the Power Rating has affected rank. A Power Rating can wane while rank improves. For instance, in 2004, the Power Rating for HP CEO Carly Fiorina declined by 3.6% from 53.5 in 2003 to 50.2 in 2004. However, her position on the list increased by two ranks, from No. 7 in 2003 to No. 5 in 2004.

  • Share/Email
  • Comment
  • Print
Comment
Login
Forgot your account info?
Add comment
Anonymous comments subject to approval. Register here for member benefits.
Have a NetworkWorld account? Log in here. Register now for a free account.

Videos

rssRss Feed