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avatar for Joel Stern

Joel Stern

Stern Value Management. Ltd.
CEO

JOEL M. STERN is Chairman and Chief Executive Officer of three firms, Stern Value Management (SVM), Stern Solutions Capital Partners (SSCP), and Stern Learning Systems (SLS). He is the founder of all three firms.

SVM implements management systems that measure company performance on the basis of economic value, the system prioritizes capital expenditures -- both organic growth from within and acquisitions outside the firm -- prioritizing them on the basis of which create the most value down to those that destroy the most value while encouraging clients to either fix or dispose of operations that are destroying value. To reinforce the appropriate value-add behavior on the part of management and all employees, SVM has designed incentive compensation systems based on sustainable improvements in the measure, EVA®. This makes the interests of shareholders and management perfectly congruent and is carried down to the shop floor, such firms in effect do not have employees but rather they have partners in the creation of value.

For 17 years, Joel Stern was a rotating panelist on the television program “Wall Street with Louis Rukeyser” and more recently he has been a regular guest on both Bloomberg Television and Radio programs expressing his opinion on both economic and political issues. He is the author of two of books and the co-author of six others. His most recent book is “The EVA Challenge” in 2001 co-authored with John Shiely, retired chief executive of Briggs & Stratton. From 1973-1976 he was a regular financial policy columnist for the Financial Times of London. From 1979-1983 he made frequent contributions to the editorial page of The Wall Street Journal. More recently he has been a regular columnist for FinWeek.

He teaches at five graduate schools around the world. In the United States the schools are the University of Chicago Booth School (11 years) and Carnegie Mellon Tepper School in Pittsburgh (25 years) where Joel carries the title of “Distinguished Professor.” Outside the United States he teaches at Universidad Francisco Marroquín in Guatemala; the University of Cape Town in South Africa; and the National University of Singapore. For 37 years Joel Stern taught at the Graduate School of Business at Columbia University which ended in the year 2014.

From an historical point of view, after Joel graduated from the University of Chicago where his studies were in finance and economics, he joined the Chase Manhattan Bank where he ultimately ran their global consulting operations, called Chase Financial Policy. In 1982 he founded Stern Stewart & Co. (known as Stern Value Management as of November 2013).

Joel has advised more than 2,500 firms in his career, more than 900 of them as part of SVM.

Turning now to our other two firms. SSCP is a private equity firm that advises clients on raising capital and closing transactions, but only those that are expected to create sustainable value. To reinforce this, SSCP takes the lion’s share of its fees in the form of an equity ownership stake.

SLS is converting his lectures in graduate school into an internet product that will be available to everyone worldwide. It is expected to be available in 2018.