Conclusion

In a nutshell, here is the logic. Firm valuation has evolved from increasingly granular financial metrics to intangibles to leadership (Figure 1.2). Quality of leadership has evolved from personal leader traits to how the leader delivers to others within the organization to creating value outside the organization. Leadership can inform the valuation effort to create information advantages for investors and to deliver sustainable intangibles within the firm. The intersection of firm valuation and quality of leadership benefits creates leadership capital.

It is time for a leadership capital index that would benefit investors and others interested in both valuation and leadership.