Joel Stern
Encyclopedia
Joel M. Stern is Chairman and Chief Executive Officer of Stern Stewart & Co
., and the creator and developer of Economic Value Added
(EVA). He is a recognized authority on financial economics
, corporate performance measurement, corporate valuation
and incentive compensation and is a pioneer and leading advocate of the concept of shareholder value
. He is also active in academia, and in the media.
After graduating from the University of Chicago
's graduate program in Finance and Economics, he joined the Chase Manhattan Bank
where he ultimately ran Chase Financial Policy, their global consulting operation. During this time, he developed EVA. In 1982, after 18 years at Chase Manhattan, he started Stern Stewart as "[t]he bank didn’t have the vision [he] felt was necessary to turn a consulting practice based on the economic model of the firm into a successful business."
He is the author of two books and the co-author of six others - all in financial economics. He is the executive editor of the Journal of Applied Corporate Finance and is a member of the Editorial Board of the Journal of Financial Management and Analysis.
He teaches at or has served on the faculties of several graduate business school
s in America and abroad, including as a professor at Columbia University, Carnegie Mellon University, The University of Chicago, the University of Cape Town, Singapore Management University and Old Dominion. He is also part of the Executive Advisory Committee of the William E. Simon Graduate School of Business Administration
at the University of Rochester
and is a member of the University of Chicago's Council on the Graduate School of Business.
His media involvements include being the financial policy columnist for the London Sunday Times and The Financial Times
. He has also written for the Wall Street Journal editorial page, the New York Times and Fortune
amongst others. He also has appeared on national business news programs, including CNN
’s Moneyline
and Wall Street Week, where he was a rotating panelist for 17 years.
He holds an MBA (1964) from Chicago.
Stern Stewart & Co
Stern Stewart & Co is a worldwide management consulting firm founded in New York in 1982. The company developed the Economic value added concept and currently owns the trademark. The current CEO and chairman of Stern Stewart & Co., New York is Joel M. Stern...
., and the creator and developer of Economic Value Added
Economic value added
In corporate finance, Economic Value Added or EVA, a registered trademark of Stern Stewart & Co., is an estimate of a firm's economic profit – being the value created in excess of the required return of the company's investors . Quite simply, EVA is the profit earned by the firm less the cost of...
(EVA). He is a recognized authority on financial economics
Financial economics
Financial Economics is the branch of economics concerned with "the allocation and deployment of economic resources, both spatially and across time, in an uncertain environment"....
, corporate performance measurement, corporate valuation
Business valuation
Business valuation is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to consummate a sale of a business...
and incentive compensation and is a pioneer and leading advocate of the concept of shareholder value
Shareholder value
Shareholder value is a business term, sometimes phrased as shareholder value maximization or as the shareholder value model, which implies that the ultimate measure of a company's success is the extent to which it enriches shareholders...
. He is also active in academia, and in the media.
After graduating from the University of Chicago
University of Chicago
The University of Chicago is a private research university in Chicago, Illinois, USA. It was founded by the American Baptist Education Society with a donation from oil magnate and philanthropist John D. Rockefeller and incorporated in 1890...
's graduate program in Finance and Economics, he joined the Chase Manhattan Bank
Chase Manhattan Bank
JPMorgan Chase Bank, N.A., doing business as Chase, is a national bank that constitutes the consumer and commercial banking subsidiary of financial services firm JPMorgan Chase. The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000...
where he ultimately ran Chase Financial Policy, their global consulting operation. During this time, he developed EVA. In 1982, after 18 years at Chase Manhattan, he started Stern Stewart as "[t]he bank didn’t have the vision [he] felt was necessary to turn a consulting practice based on the economic model of the firm into a successful business."
He is the author of two books and the co-author of six others - all in financial economics. He is the executive editor of the Journal of Applied Corporate Finance and is a member of the Editorial Board of the Journal of Financial Management and Analysis.
He teaches at or has served on the faculties of several graduate business school
Business school
A business school is a university-level institution that confers degrees in Business Administration. It teaches topics such as accounting, administration, economics, entrepreneurship, finance, information systems, marketing, organizational behavior, public relations, strategy, human resource...
s in America and abroad, including as a professor at Columbia University, Carnegie Mellon University, The University of Chicago, the University of Cape Town, Singapore Management University and Old Dominion. He is also part of the Executive Advisory Committee of the William E. Simon Graduate School of Business Administration
William E. Simon Graduate School of Business Administration
The University of Rochester Simon Graduate School of Business is the business school located on the University's River Campus in Rochester, New York. It was renamed after William E. Simon , the 63rd United States Secretary of the Treasury, in 1986...
at the University of Rochester
University of Rochester
The University of Rochester is a private, nonsectarian, research university in Rochester, New York, United States. The university grants undergraduate and graduate degrees, including doctoral and professional degrees. The university has six schools and various interdisciplinary programs.The...
and is a member of the University of Chicago's Council on the Graduate School of Business.
His media involvements include being the financial policy columnist for the London Sunday Times and The Financial Times
Financial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....
. He has also written for the Wall Street Journal editorial page, the New York Times and Fortune
Fortune (magazine)
Fortune is a global business magazine published by Time Inc. Founded by Henry Luce in 1930, the publishing business, consisting of Time, Life, Fortune, and Sports Illustrated, grew to become Time Warner. In turn, AOL grew as it acquired Time Warner in 2000 when Time Warner was the world's largest...
amongst others. He also has appeared on national business news programs, including CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...
’s Moneyline
Lou Dobbs Tonight
Lou Dobbs Tonight is an American editorial commentary and discussion program hosted by Lou Dobbs, previously broadcast on CNN and currently on Fox Business Network. The hour-long show aired live on evenings every weekday, and was replayed in the overnight/early morning hours. It covered the major...
and Wall Street Week, where he was a rotating panelist for 17 years.
He holds an MBA (1964) from Chicago.